Peso back at 56 to $1

MANILA  -The Philippine peso is back beyond the 56:$1 threshold, losing 28 centavos to the US dollar to close at 56.02:$1 on Aug. 7.

This was just three trading days after crossing the 55:$1-mark at 55.19:$1 on Aug. 2.

The local currency has lost P1.25 against the greenback since starting the month at 54.77:$1.

On Aug. 7, the peso traded at as strong as 55:60:$1 and as weak as 56:06:$1.

Monday’s closing rate was the weakest for the peso in almost two months or since June 9, when it was pegged at 56.05 against the greenback.

Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said the peso has been depreciating for four straight trading days while the US dollar has been trading against major global currencies at its strongest position over the past month.

“The peso also weakened after recent signals (from the Bangko Sentral ng Pilipinas) on being careful of not hiking local policy rates too much to avoid slowing economic growth, as well as some net foreign selling in the local stock market recently,” Ricafort said