Peso soars to near five-month high as US-Iran talks soothe sentiment

THE PESO jumped to a near five-month high against the dollar on Wednesday, supported by easing geopolitical concerns amid ongoing negotiations between the United States and Iran.

The local unit strengthened by 12.5 centavos to close at P57.861 versus the greenback from its P57.986 finish on Monday, data from the Bankers Association of the Philippines showed.

This was the peso’s strongest finish in close to five months or since it ended at P57.461 on Sept. 24, 2025.

The local currency opened Wednesday’s trading session a tad stronger at P57.94 against the dollar. Its weakest showing was at P58.04, while its intraday high was at P57.84 against the greenback.

Dollars traded rose to $1.046 billion from $896.5 million on Monday.

The peso was supported by easing global crude oil prices amid continued negotiations between the US and Iran, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Oil prices steadied in Asian trade on Wednesday after falling about 2% in the previous session as investors assessed progress in US-Iran talks but remained cautious about the prospects of a final deal that could ease supply concerns, Reuters reported.

Brent futures rose 15 cents or 0.22% to $67.57 a barrel by 0737 GMT, while US West Texas Intermediate crude was up 12 cents or 0.19% at $62.45. Both are around two-week lows.

Iran and the US reached an understanding on Tuesday on main “guiding principles” in talks aimed at resolving their longstanding nuclear dispute, but that does not mean a deal is imminent, Iranian Foreign Minister Abbas Araqchi said.

But the dollar was broadly higher on Wednesday as geopolitical risks kept markets on edge and investors awaited minutes from the US Federal Reserve for signals on future rate cuts.

With many markets in Asia closed for Lunar New Year holidays, investors were looking ahead to the Fed’s readout of its last meeting and other key US economic data for trading catalysts.

The dollar index, which measures the greenback against a basket of currencies, rose 0.1% to 97.23 after a two-day advance.

The Fed’s Open Market Committee issues minutes from its January meeting later on Wednesday, while the Commerce department will release durable goods data for December and on Friday will issue its first estimate for fourth-quarter gross domestic product. Chicago Fed President Austan Goolsbee said on Tuesday that the central bank could approve “several more” rate cuts this year, depending on inflation.

“The peso appreciated further to recent highs amid expectations of a downbeat US durable goods report overnight,” a trader said in an e-mail.

For Thursday, the trader said the peso could weaken due to potentially hawkish statements in the Fed minutes and uncertainty ahead of the Bangko Sentral ng Pilipinas’ policy meeting. Both the trader and Mr. Ricafort see the peso moving between P57.75 and P58 per dollar. — Aaron Michael C. Sy with Reuters