The peso weakened to a new five-year low of P46.92 to the dollar on the first trading day of the week as investors continued to favor the US currency as a safer investment.
The Philippine currency lost 19 centavos from Friday and closed on Monday at its weakest level since May 25, 2010, when it traded at P47.10 to the dollar.
“The peso continues to track the weakness in regional currencies, with the dollar sustaining its strength against Asian currencies overnight,” said Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands (BPI).
“Flight to safety was the name of the game, with both traditional safe harbor currencies—the dollar and the yen—stronger,” he added.
Mapa noted that anxiety over the timing of the Fed rate hike again gripped the markets, although the August US non-farm payroll (NFP) data fell below expectations.
NFP in August came in below forecasts at 173,000 while data for the past two months was revised to 44,000.
The local currency opened on Monday at P46.95 to $1 on the Philippine Dealing System (PDS) before trading between P46.86 and P46.95.
Total volume transacted on the PDS rose to $569.33 million from $393.4 million traded Friday.