Peso extends losing streak

The peso continued yesterday is losing streak, closing a shortened trading session at a new four-week low, on higher month-end corporate demand for the dollar, dealers said.

At the Philippine Dealing System (PDS), the peso closed at 56.055 against the dollar, its intra-day high, after trading at a low of 56.11 on a volume of $112 million. It closed at 56.045 to $1 on Wednesday.

Yesterday’s closing rate was the peso’s weakest close since July 26 when it ended at 56.08 to $1.

The PDS shortened the peso-dollar trading to until noon due to heavy rains caused by typhoons Aere and Chaba.

Concerns over the country’s chronic fiscal problem, more so after President Arroyo herself admitted that the Philippines is in the midst of a fiscal crisis, continue to weigh on sentiment, dealers said.

"We have entered the time of the year when the dollar is traditionally stronger because there’s more demand for it during import season," a local bank dealer said.

"On the supply side, dollar remittances from overseas Filipino workers are lower compared to the school opening (in June) and the Christmas season."

Traders expect the peso to continue to fall, testing the 55.90 to 56.20 range today.