The peso hit its weakest level against the dollar in nearly five years on the first trading day of the week, ahead of the two-day meeting of the US Federal Reserve starting Tuesday (Wednesday in Manila).
The Philippine currency dropped in value to P45.56 to $1, losing 7 centavos from its
P45.49 close on Friday last week.
Monday’s close was the lowest finish for the peso since it settled at P45.73 on July 29, 2010.
“Players continued to watch out for any development on the Fed rate hike,” Metrobank Research said in a note.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the recent performance of the local currency was a short-term episode and expected to happen given continued uncertainty in the global markets following the normalization of US monetary policy.
“But the Philippines remains to have strong fundamental footing that will support it against these headwinds,” Guinigundo said.
The local currency opened at P45.52 to $1 on the Philippine Dealing System (PDS) on Monday before trading between P45.51 and P45.57.
Total volume transacted on the PDS fell to $583.7 million from $644.7 million in previous trade.