Philippine peso slips further to P47.50 vs $1

January 20, 2009 | By admin |

MANILA, Philippines - The peso, along with most Asian currencies, fell Tuesday as concerns over the global economy continued to weigh on regional assets.

The peso retreated 37 centavos to close at P47.50 to a dollar from P47.13 on Monday.

“There was a strong dollar across the board, perhaps in anticipation of Obama’s swearing-in,” said one trader.

Another trader, meanwhile, explained that while the expected boost to the equity and currency markets by the US President-elect Barack Obama’s inauguration might have given investors the green light to invest in emerging markets, this would be short-lived. Risk aversion would still continue to grip investors.

“It’s still mainly risk-aversion; worries about the global economic condition continue to keep the market on pins and needles… continue to keep the market volatile,” said Security Bank Treasurer Rafael S. Algarra, Jr.

“It’s a regional trend, there is weakness across currencies in the region,” Mr. Algarra added.

The peso opened Tuesday at P47.30 to a dollar, strengthening only to P47.27 in midday trading before closing at its intra-day low.

Total volume of transacted dollars reached $636.5 million, lower than the $662 million on Monday.

In the coming days, the peso will try the P47.70 to the dollar level, said a trader. — Josephine B. Valle, BusinessWorld