The peso flirted with the 62-to-$1 level today, hitting an intraday low of 61.995 on renewed tensions in the Middle East.
Data from the Bankers Association of the Philippines showed the local currency shed three centavos to close today’s session at 61.815 per dollar from Tuesday’s 61.785.
The peso opened the session at 61.85 before hitting an intraday low of 61.995, weaker than the record closing low of 61.847 per dollar booked on July 24.
A trader said the Bangko Sentral ng Pilipinas (BSP) intervened in the foreign exchange market to prevent the peso from touching the 62-to-$1 level.
Trading volume soared to $1.89 billion today from yesterday’s $1.34 billion.
RCBC chief economist Michael Ricafort said there were possible smoothing activities near the 62-to-$1 level as the peso depreciated for a fifth straight trading day and hit a record intraday low of 61.995 against the dollar.
Ricafort traced the peso’s weakness to U.S. President Donald Trump’s signal that there were no talks with Iran after a memorandum of understanding signed by the two countries in June expired on Aug. 17.
