The peso closed at its weakest level in more than two months on Thursday as end-of-the-quarter corporate demand for the dollar bolstered the US currency.
The local unit weakened to P44.83 to $1, losing 8 centavos from its P44.75 close on Wednesday.
Thursday’s close was the lowest finish for the peso since it settled at P44.87 on January 12 this year.
“Quarter-end demand for the greenback slightly pushed the rates higher,” Jonathan Ravelas, BDO chief market strategist, said.
Ravelas sees the peso continuing to test the P44.60 to P44.90 range in the sessions ahead.
The local currency opened at P44.80 to $1 at the Philippine Dealing System (PDS) on Thursday before trading between P44.78 and P44.84.
Total volume transacted on the PDS fell to $450.000 million from $551.7 million in previous trading.
“We allow market forces to determine the exchange value of the peso against the US dollar. There is some scope for the BSP participation in the foreign exchange market to make sure that trading is orderly and that those sharp fluctuations in the exchange rate are buoyant,” Diwa Guinigundo, deputy governor and officer-in-charge at the Bangko Sentral ng Pilipinas, said.