Peso Weakens on Growing US Manufacturing Output

STILL AT 7-YR LOW OF P48.245:$1

The Philippine peso remained at a seven-year-low against the dollar on Tuesday, with the greenback supported by a strong US manufacturing output in September.

The local currency closed at P48.245:$1, down 6.5 centavos from 48.180 on Monday.

The peso-dollar rate settled at its lowest in seven years since September 16, 2009, when a dollar bought P48.050.

“The peso tracked the regional weakness as the dollar came back to life given the strong ISM (Institute of Supply Management) manufacturing report from the US reported overnight,” Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands, said in an emailed noted.

The US manufacturing index rose to 51.5 percent from 49.4 percent in August, according to an ISM’s report. A reading above 50 indicates growth while a reading below 50 is a contraction.

“Volume was relatively light for a second session this week with traders awaiting the important US jobs report on Friday,” Mapa noted. — Ted Cordero/VDS, GMA News

(Source: GMAnetwork.com)