Venezuela conflict to aid peso—MUFG

Japanese financial giant MUFG Bank, Ltd. said the Philippine peso may gain from the massive offensive the United States (US) launched against Venezuela, as oil prices may drop over time due to oversupply.

- By DERCO ROSAL

MUFG Senior Currency Analyst Michael Wan said in a Jan. 5 commentary that the US attack on the oil-rich country could initially push oil prices lower, a development deemed slightly beneficial for “oil importers in Asia,” including the Philippine peso, the South Korean won, the Thai baht, and the Indian rupee.

“With oil markets already expected to be in a meaningful surplus in 2026, this could add further pressure for oil prices to head lower, even as there is uncertainty around whether and how quickly Venezuela may be able to ramp up oil production and also regime stability,” Wan noted.