Peso weakens to 50.80: $1

MANILA, Philippines — The peso continued to weaken yesterday, closing 9.50 centavos lower at 50.80 from Wednesday’s close of  50.705 to $1.

 It opened slightly stronger at 50.73 to $1, but this was still lower compared to the 50.50  to $1 opening level the previous day. Total volume reached $749.4 million, lower than Wednesday’s $930.65 million.

Asked if this was an impact of local or external developments, Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said “both.” However, the official did not specify what are these developments.

Guinigundo described the currency’s behavior as “ordinary, regular movement of the peso.”

“It can vary, it can change, but if you look at the real effective exchange rate, it’s almost not moving,” Guinigundo said.

According to Guinigundo, the movement of the peso reflects the currency’s flexibility to adjust depending on economic conditions at certain points.

“What is important is that the peso is flexible, there is limited volatility, so that people are discouraged from speculating, and then when there’s little speculation on the market, then you have a very healthy foreign exchange,” he said.