Peso still on the wane

The peso on Thursday fell once again although its losses were kept in check by the intervention of the central bank in the foreign exchange market.

The local currency ended the day weaker at 45.12:$1 from 45.00: $1 the day before.

Wednesday’s close was the first time the peso reached the 45:$1 territory since September 2010.

Thursday’s rate, meanwhile, was the weakest since August 31, 2010, when the peso closed at 45.37 against the US dollar. The peso opened weaker at 45.10: $1 before it turned in an intraday low of 45.165: $1.

The peso’s losses were pared slightly later that day, helping push the currency up to an intraday high of 45.055: $1.

Volume trade was slightly lower with $816.40 million, from Wednesday’s $912.90 million.

Amando M. Tetangco Jr., governor of the Bangko Sentral ng Pilipinas, said the peso’s losses could have been influenced by an increase in the  demand for dollars from local corporations that needed to fund dollar-denominated expenses.

“The peso’s movement is also due to foreign exchange requirements particularly for imports, as the economy grows,” he added.  Paolo G. Montecillo