The peso closed at its weakest level in nearly three weeks on Tuesday as the dollar gained strength on strong US manufacturing and construction data.
The local unit closed at P44.71 to $1, shedding 18 centavos from P44.53 on Monday.
Tuesday’s closing level was the lowest for the peso since it settled at P44.72 on May 13 this year.
“The general dollar strength on the back of generally solid manufacturing and construction data from the US overnight. This heightens the chances of an early Fed rate hike,” Nicholas Mapa, associate economist at the Bank of the Philippine Islands, said.
Construction spending in the US rose 2.2 percent in April from an estimate of 0.8 percent.
Meanwhile, the Institute for Supply Management’s manufacturing index edged up to 52.8 in May from 51.5 in April.
The local currency opened at P44.60 to $1 on the Philippine Dealing System (PDS) on Tuesday before trading between P44.60 and P44.71.
The total volume of transactions on the PDS rose to $985.4 million from $429.4 million in previous trading.