The peso lost more value against the dollar in Thursday trade after US Treasury yields rose following strong housing data and local corporate demand for the greenback.
The local currency closed at P44.30 to $1 on the Philippine Dealing System (PDS), losing 8 centavos from P44.22 on Wednesday. It earlier opened at P44.25 to $1 and traded between P44.24 and P44.32.
“The dollar sustained its resurgence with US Treasury yields floating higher overnight on strong housing data,” Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands, said.
Yields on 10-year US treasuries rose 0.07 of a percentage point to 1.98 percent after the National Association of Realtors reported that US existing-home sales rebounded in March to their fastest pace in 18 months. Total sales of used homes jumped 6.1 percent to an annual 5.19 million units in March.
“The peso also weakened as corporates took the opportunity to advance their end-month corporate purchases of the dollar,” he added.
Total volume transacted dropped to $547.4 million from $602.6 million previously.
The government sees the local currency trading between the P43 and P46 to the dollar range this year.