Peso drops to new 10-month low
THE PESO dropped to a new 10-month low against the dollar on Thursday due to market worries over possibilities of a US government shutdown.
The local currency closed at P56.98 versus the dollar on Thursday, weakening by three centavos from Wednesday鈥檚 P56.95 finish, data from the Bankers Association of the Philippines鈥 website showed.
This was the peso鈥檚 weakest finish in over 10 months or since its P57.375-per-dollar finish on Nov. 22, 2022.
The local unit opened Thursday鈥檚 session stronger at P56.888 per dollar, which was also its intraday best. Its weakest showing was its close of P56.98 against the greenback.
Dollars traded went down to $980.6 million on Thursday from the $1.35 billion on Wednesday, Bankers Association of the Philippines data showed.
鈥淭he peso weakened anew due to renewed market worries over the possibility of a US government shutdown over the weekend,鈥 a trader said in an e-mail.
The peso was also dragged down by the dollar鈥檚 continued strength and high global crude oil prices recently, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.
For Friday, the trader said the peso could depreciate further ahead of potentially stronger US producer inflation data.
The trader sees the peso moving between P56.80 and P57 per dollar on Friday, while Mr. Ricafort sees it ranging from P56.85 to P56.99. 鈥 AMCS
