Dragged by profit-taking, end-month corporate dollar demand
The peso weakened by 6 centavos at the start of the trading week as players booked profits on the local unit’s recent gains and as corporate demand for the dollar bolstered the US currency.
The local unit weakened to P46.47 to $1, losing 6 centavos from its P46.41 close Friday last week.
An analyst said the dollar recovered as dealers booked profits on the peso’s recent rally.
“The peso tracked peers with the dollar regaining its footing after Friday’s tumble,” said Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands.
After the United States Federal Reserve decided to keep its policy interest rates near zero, the peso advanced against the greenback on Friday.
Mapa added that dealers also digested the recent Federal Open Market Committee decision with the hawkish Fed president reiterating that a rate hike in 2015 was still a possibility.
“End-month corporate demand for the dollar also forced the peso to retreat,” he added.
The local currency opened at P46.53 to $1 at the Philippine Dealing System (PDS) on Monday before trading between P46.45 and P46.56.
Total volume transacted on the PDS fell to $574.2 million from $617.5 million in previous trading.