The peso dropped further against the US dollar on Thursday, hitting a three-week low amid lingering concerns on global economic growth.
The currency fell to P46.64 to $1, losing 17 centavos from its P46.47 close on Wednesday. Thursday’s finish was the weakest since October 2 when the peso slid to P46.77.
“Asian currencies continue to be rocked by global growth concerns and people loading up on the dollar on save haven bets,” said Nicholas Antonio Mapa, Bank of the Philippine Islands associate economist.
Mapa explained that Asian currencies were under pressure following a sell-off in Chinese equities and concerns over global growth that has dampened commodity prices.
“The sharp plunge in China’s stocks on Wednesday forced dealers to reassess taking risks, sparking risk off sentiment,” he said.
China shares lost 3 percent on Wednesday, their worst daily performance in five weeks. Mainland stocks recovered somewhat on Thursday.
The peso opened at P46.52 to $1 on the Philippine Dealing System (PDS) before trading between P46.45 and P46.64.
Total volume transacted declined to P973.8 million from P1.101 billion in the previous session.