The Philippine peso weakens further against the US dollar. AFP FILE PHOTO
The peso weakened further against the US dollar on Wednesday, closing at 50.600 in another almost 11-year low.
Hitting an intraday low at the same value against $1 and a high at 50.470, the local currency opened at 50.540, slightly weaker than Tuesday’s close of 50.520.
The total volume traded dipped slightly to $507 million from Tuesday’s $540 million.
First Metro Investment Corporation, the investment banking arm of the Metrobank Group, maintained its peso-dollar forecast of an average of P51 against the US dollar on the back of the strengthening US economy.
“We’re seeing that the US economy – and surprisingly, EU and Japan, are doing better. That means that the [US] dollar is expected to be stronger, even [it temporarily] shows some weakness,” economics professor Victor A. Abola from the University of Asia & the Pacific.
“But with the ten year bonds in the US rising already by less than 20 basis points, that’s a clear sign of being able to attract more funds to the US,” Abola added. – Frances Josephine Espeso