Pesos hits 3-month low against the dollar on credit worries

MANILA (AFP) - The Philippine peso lost more ground in early trade Friday, hitting three-month lows against the US dollar as global investors fled emerging markets due to lingering concerns about the US housing and credit markets.

The peso quickly fell to 46.88 to the dollar after opening at 46.70 which prompted the Philippine central bank to add more than usual liquidity Thursday its regular money market operations.

On Thursday the local currency closed at 46.43 to the dollar.

"Market players will continue to take their lead from international developments. More risk aversion should see a higher dollar versus the peso," a trader with a local commercial bank said.

"However, should risk aversion wane, the peso should get a boost as the Philippine economy remains fundamentally sound," he said.

"People are still taking a defensive position and given that, I think there's room for a further slide to the 47 (to the dollar) levels," Jonathan Ravelas, a market strategist at Banco de Oro-EPCI Inc, said.