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MANILA, Philippines — The Philippine peso is expected to remain sensitive this week to oil prices, rising US Treasury yields, and central bank rhetoric, MUFG Global Markets Research said, as the prolonged war in the Middle East continues to expose country-specific vulnerabilities across Asia.
“For the week ahead, the peso will likely remain more sensitive to oil prices, US yields and Bangko Sentral ng Pilipinas (BSP) rhetoric than to domestic growth data,” MUFG said in a note to clients.
“If oil remains elevated and US dollar strength persists, peso-dollar risks staying near the upper end of the recent range, although the BSP’s hawkish pivot should reduce the risk of a disorderly move,” it added.
Last week, the peso weakened to a record-low closing of 61.75, as rising US Treasury yields amid mounting expectations of interest-rate increases from major central banks drove the greenback’s strength.
