THE peso’s return to an all-time low on Thursday was due to the continued strengthening of the greenback, the Bangko Sentral ng Pilipinas (BSP) said.
The currency, which hit P59:$1 on Thursday, regained some ground to close out the week at P58.87 to the dollar.
“The recent depreciation of the peso against the dollar is about a strong US dollar story due to the rising geopolitical tensions,” the central bank said in a statement.
“The peso traded in line with the regional currencies we benchmark against,” it added.
Analysts have said that the decline was due to uncertainties over the pace of US Federal Reserve rate cuts and mixed signals from local monetary authorities.
The BSP, which intervened when the peso first hit the P59:$1 mark on Oct. 22, was mum on Friday if it had done so again.
The currency, which strengthened by 13 centavos, opened at P58.95:$1 and ranged from P58.81 to P58.96.
Volume rose to P1.072 billion from P843 million on Thursday.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso gained after global crude oil prices hit 11-month lows.
The benchmark Philippine Stock Exchange index, meanwhile, fell for a second straight day on Friday, shedding 82.88 points, or 1.21 percent, to 6,780.13.
The broader All Shares dipped by 21.18 points, or 0.56 percent, to 3,788.21.
Philstocks Financial Inc. research manager Japhet Tantiangco said “the local market extended its decline as investors continued with their profit taking, maintaining a cautious stance amid the lack of fresh positive leads.”
“Also weighing on the market was the weakness of the local currency against the US dollar, already touching the P59 [to $1] level,” he added.
Tantiangco said the day’s trading was “anemic” with net value turnover at P3.11 billion, below the year-to-date average of P5.17 billion.
“Foreigners were net sellers with net outflows amounting to P584.49 million,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “Philippine shares fell once more as missile strikes between Russia and Ukraine dominated headlines.”
All sector indices but one were in the red with services down the most by 1.61 percent. Mining and oil sector was the sole gainer, marginally rising by 0.07 percent.
On a company basis, decliners edged out gainers, 108 to 76, while 64 were unchanged.
