Following its recent gains, the peso declined on Monday, Dec. 9, slipping to the 58 level against the US dollar, mainly due to a slight correction in global currencies and ongoing geopolitical concerns.
Data from the Bankers Association of the Philippines showed the local currency fell by 0.27 centavos from Friday’s closing rate of P57.776 against the dollar.
On Monday, the peso opened trading at P57.9 against the dollar, dipping to P58.13, but climbed again to P57.9. However, the local currency failed to maintain this strength and closed at 58.01.
The dollar trading volume also decreased to $1.328 billion, down from $1.715 billion on Sunday.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the peso slightly weakened after four days of improvement, following a correction in global currencies and geopolitical concerns.
Despite this, Ricafort stressed that the peso remains at its best level in over a month, with the market anticipating upcoming US inflation data.
He said the peso is being supported by increased overseas Filipino worker (OFW) remittances, with many converting to pesos ahead of the holiday spending rush. This seasonal boost is expected to continue through the first two weeks of December.
“For tomorrow, [Dec.10], the US dollar/peso exchange rate could range between 57.90 and 58.10,” he forecasted.
He noted that the peso faces resistance levels at 58 to 58.50, with a potential re-test of the 59 high, while support is at 57.65 and 56.80 to 57.20.