Peso remains at almost 11-year low

The peso on Tuesday moved sideways against the US dollar but remained at an almost 11-year low level, closing at 50.52:$1.

The local currency hit an intraday low of 50.58:$1 and a high of 50.48:$1 at the Philippine Dealing System after it opened at 50.55:$1, also weaker than Monday’s close of 50.545:$1.

Tuesday’s volume jumped to $540.3 million from the $395 million traded Monday.

“The US dollar-Philippine peso pair remained elevated given strong US economic data reported overnight. The peso also came under pressure on risk-off tone with North Korea conducting missile tests,” Emilio S. Neri Jr., vice president and chief economist of the Bank of the Philippine Islands, said. “Foreign players were also noted off-loading equity shares although the local unit managed to close stronger by the close on profit taking.”

For his part, Guian Angelo S. Dumalagan, Land Bank of the Philippines market economist, noted that, while “the peso opened slightly weaker likely because of upbeat US manufacturing data last night,” it “recovered towards the end of the day due to profit taking ahead of the FOMC minutes and the US nonfarm payrolls report,” referring to the policy-setting Federal Open Market Committee. –Frances Josephine E. Espeso /atm