The peso weakened against the greenback on Wednesday, returning to the P47:$1 level as investors remained jittery given concerns over the Middle East, China’s economy and inflation in the eurozone.
The currency gained 13 centavos to close at P47.02 to $1 from its P46.89 finish on Tuesday.
“The dollar pushed broadly higher against its major counterparts as downbeat eurozone inflation data, concerns over Chinese growth and mounting tensions in the Middle East continued to weigh on market sentiment,” Metrobank Research said.
Inflation in the eurozone remained at 0.2 percent in December, “providing signals that the European Central Bank could employ additional stimulus measures in the coming weeks to stave off risk of deflation,” the research arm of Metropolitan Bank and Trust Co. noted.
“Markets continue to be jittery amid concerns over growing tensions in the Middle East after Saudi Arabia executed a prominent Shi’ite cleric, prompting a retaliatory attack on the Saudi Embassy in Iran,” it added.
The peso opened at P46.87 to $1 at the Philippine Dealing System before trading between P46.82 and P47.04. Total transactions rose to P786.4 million from P768.6 million previously.