Philippine pesos bills pesos 1,000 php
Image Credit: Gulf News

Manila: Overseas Filipino workers (OFWs) sending money to loved ones home saw a boost in the peso value of their remittance as the Philippine currency dropped further to 51.66 against the greenback (at 9.11am GMT on Thursday), lower than the range local traders projected for the day, as traders bought more US currency in the local market.

The peso went to an intra-day high of Php51.3250 against the US dollar, before closing lower at Php51.391 on Thursday, according to the Philippine central bank BSP.

Data from the BSP show the peso closed at P51.249 per dollar on Wednesday, from P51.385 close on Tuesday. The Philippine Stock Market, meanwhile, rose 1.15% to close at 7,388.09 on Thursday.

In terms of value $1.032 billion dollars were exchanged on Wednesday, from Tuesday’s $942.21 million.

A trader said demand for the dollar as a safe-haven currency was up, was amid escalating tensions between Russia and Ukraine, thus leading to the peso's weakening.

Traders point to the continuing geopolitical tensions keep markets worried.

Historically, the Philippine Peso reached an all-time low of 56.56 in October of 2004. Analysts see the peso to trade between Php50 and Php52 to the US dollar in February after closing January at P50.95:$1.

Reuters reported that more than 450,000 people have moved to Poland from Ukraine while 113,000 went to Romania to escape the atrocities caused by the Russian invasion that started last week.

Oil prices jumped to $118 on Thursday, its highest since 2014, amid oil supply risks despite a concerted by leading economies to release strategic crude reserves.

On Thursday [9.11 am GMT], Brent futures jumped to $117.3, up 3.91% or $4.42, the highest close since August 2014.

Meanwhile, US West Texas Intermediate crude climbed $4.14 or 3.74% to $114.7 per a barrel, the highest close since July 2014.