The peso tumbled to its lowest level against the US dollar in nearly two weeks on Wednesday as weakness in equity markets on the back of tepid Chinese manufacturing data spurred demand for the greenback.
The local unit weakened to P46.83 to $1, losing 24 centavos from its P46.59 close on Tuesday. Wednesday’s finish was the weakest close since September 11, when the peso slid to P46.89 to $1.
Jonathan Ravelas, chief market strategist of Banco de Oro, said weakening equity markets were largely responsible for the volatility that encouraged buying of the US currency.
On Wednesday, Asian equity markets softened as activity in China’s manufacturing sector fell 47 percent in September, its biggest decline in six-and-a-half years.
In the Philippines, the local shares benchmark index slipped 1.76 percent.
The local currency opened at P46.67 to $1 on the Philippine Dealing System (PDS) on Wednesday before trading between P46.65 and P46.83.
Total volume transacted on the PDS rose to $877.2 million from $562.75 million in the previous session.