Peso weakens anew vs dollar as markets await US-Iran peace deal details

THE PESO depreciated against the dollar on Wednesday as markets await the final agreement between the United States and Iran.

The currency weakened by 7.3 centavos to close at P60.393 versus the greenback from P60.32 on Tuesday, based on Bankers Association of the Philippines data posted on its website.

The local unit opened Wednesday’s session stronger at P60.24 per dollar. Its intraday best was at P60.23, while it dropped to a low of P60.44 against the greenback.

Dollars traded went down to $1.65 billion on Wednesday from $2.51 billion on Tuesday.

The peso ended lower against the dollar following mixed signals from US officials on the next stage of the ceasefire deal with Iran and challenges related to the reopening the Strait of Hormuz, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Thursday, Mr. Ricafort sees the local unit ranging from P60.25 to P60.50 against the greenback.

Leaders of the Group os Seven countries demanded a ceasefire in Lebanon on Wednesday and said they will diversify energy supply routes to reduce dependence on the Strait of Hormuz in response to the war in Iran, as they welcomed an interim deal to end the conflict, Reuters reported.

The leaders met for a summit in the French town of Evian-les-Bains on Lake Geneva, while details of the US-Iran ceasefire agreement trickled out of Washington and Tehran ahead of its formal unveiling, expected on Friday across the nearby Swiss border.

The US-Iran agreement is expected to launch negotiations towards a final settlement to end the war, which has killed more than 7,000 people, mostly in Iran and Lebanon.

The memorandum of understanding signed by Washington and Tehran this week, though yet to be made public, extends a ceasefire announced in April by another 60 days to allow the warring countries to negotiate a permanent truce.

The US president appears to have achieved little of what he said he wanted at the outset of the war. — A.M.C. Sy with Reuters