THE peso on Thursday closed at its weakest level in 10 weeks following a spike in United States Treasury yields.
The Philippine currency weakened to P44.81 to $1, losing 7 centavos from P44.74 on Wednesday.
Thursday’s close was the lowest finish for the peso since it settled at P44.83 on March 26.
“US Treasury yields spiked overnight, enticing dealers to pick up the bonds and thus helping the dollar strengthen,” Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands (BPI), said.
Yields on US 10year notes hit a high of 2.38 percent on Wednesday (Thursday in Manila)—its highest since November 14.
Mapa noted the strong nonfarm payroll number and expectations of an early Fed rate hike, propped up the dollar.
Payroll processing firm ADP said nonfarm private employment rose by a seasonally adjusted 201,000 in May, just above expectations of a 200,000 increase.
The local currency opened at P44.80 to $1 on the Philippine Dealing System (PDS) Thursday before trading between P44.75 and P44.84.
Total volume reached $619.250 million from $601.400 million on Wednesday.