Peso slides further vs dollar, now at P50.670

INQUIRER.net FILE PHOTO

MANILA — The peso weakened further against the US dollar at 50.670 on Thursday, still close to an 11-year low after the peso closed at 50.600 the day before.

Opening at 50.530 at $1, slightly stronger than Wednesday’s close, the local currency had an intraday low of 50.695 and a high of 50.530 at the Philippine Dealing System.

Total volume traded dropped to $430 million from $507 million on Wednesday.

Bangko Sentral ng Pilipinas (BSP) Gov. Nestor Espenilla attributed the latest peso movements to “prevailing market conditions and underlying economic fundamentals, in line with the BSP’s exchange rate policy.”

“A major driver is sentiment for a stronger US dollar as the Fed moves forward with steps to normalize from ultra-easy monetary policy as US economic conditions steadily improve. There is also growing policy convergence with Europe and even Japan,” said Espenilla in a text message to reporters.

The newly inaugurated central bank governor however said that this was “business as usual.”

“The BSP is nevertheless actively managing excessive volatility,” Espenilla said.  SFM