Last week, oil prices touched US$90 per barrel and this volatility will likely continue as tensions in oil-rich Northern Iraq over Turkey's determination to retaliate against Kurdish rebels remain.
With the US housing slump on account of the sub-prime mortgage market imploding and dragging over-all US growth, associated credit risks spread out across the globe are still playing out and the extent of the losses are still being assessed.
With the Glorietta blast last Friday aggravating the situation, stocks predictably nose-dived although the peso has somewhat recovered. I'm pretty sure the Central Bank intervened to calm the markets.
However, I think the peso will likely strengthen further with the onset of the holiday season.
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