On the foreign exchange spot market, the local currency ended the heavy trading session at P58.42 to the dollar against the previous day’s close of P57.97.
“It’s the mighty dollar,” a senior banker told InsiderPH. “Corporates are buying at every dip.”
He explained that fading expectations for an early interest rate reduction by the US Federal Reserve are making more fund managers to keep their assets in dollars, while encouraging those who are still holding other currencies to make a temporary punt on the greenback.
Another trader said the Bangko Sentral ng Pilipinas did not appear keen to defend the peso from depreciating further on Wednesday — an observation that echoes earlier official statements that the central bank will allow the currency to find its own level.
Trading was heavy with $1.399 billion changing hands.
Wednesday’s close puts the local currency just a little over half a peso from the next key threshold of P59:$1.
Senior Reporter
