Peso matches record closing low of 56.45:$1

The peso retreated anew yesterday, matching its previous record closing low of 56.450 to the dollar as the local financial market reeled from the continued surge in global oil prices which stormed above the $54 a barrel level for the first time in electronic trading on the New York Mercantile Exchange.

The local currency took fresh beatings at the Philippine Dealing System (PDS) after touching the all-time low on Tuesday when it still managed to close at 56.34 to the dollar.

Yesterday’s trade, however, broke the resilience of the peso, sending it back to its all-time low of 56.450 to the dollar which was last touched in Sept. 27 this year.

The peso opened weak at 56.40 before hitting a high of 56.380 and a low of 56.450 to $1. Total volume amounted to $166.75 million on an average rate of 56.412 to the dollar.

Market watchers said it was only a matter of time before the peso breaks the latest closing low and sets a new record before it gains ground again towards the holiday season.

The Bangko Sentral ng Pilipinas (BSP) said, however, that it did not intervene, saying that there was enough sellers in the market to indicate that the trades were real and there were no excessive speculation on the peso.

BSP Governor Rafael B. Buenaventura told reporters that despite hitting the all-time low, the peso was still trading within range with no indication of spiraling out of control.

"We may see some volatility in the next few days but that will be range-bound," Buenaventura said.

"Beginning November and up to the first two weeks of December, we will see some inflows from overseas workers and that will support the peso," he added.

November and December are seasonally peak months for OFW inflows as workers send back money to their families ahead of the Christmas season.

During these months, the peso normally picks up strength.