The central bank reiterated its stance of maintaining its presence in the foreign exchange market, after the peso slipped to P45 to the US dollar around midday of the first trading day of the week, from P44.88 on Friday.
The local currency showed weakness on Monday on the Philippine Dealing System (PDS), opening at P44.96 to $1 and hitting a low of P45 around midday. It regained some strength to between P44.89 and P45 before closing the day’s trade at P44.90.
Volume transacted on the PDS rose to $411.900 million from $566.700 million traded on October 31. The peso weekend by 2 centavos from the P44.88 close on Friday last week.
“The peso movement today (narrow range) is partly due two-way flows,” Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said in a text message to reporters on Monday. Tetangco traced the initial weakness of the peso to the strength of the US dollar. The BSP governor noted that the stronger US currency still reflected reaction to the Bank of Japan’s announcement last week that it would ratchet up its own quantitative easing program.
Tetangco, however, also noted that before the end of the trading day, some corporate dollar receipts and equity related inflows helped the peso recover a bit toward the close at P44.90.
“The BSP is monitoring developments. We will keep a presence in the market as is appropriate to help avoid excessive volatility,” he added.