The peso sank to a one-month low on Tuesday, April 24, as the dollar strengthened on the back of higher US Treasury yields.
The local currency ended Tuesday’s session at P52.32 against the greenback, weaker by eight centavos from its P52.24-per-dollar finish on Monday. This is the peso’s weakest showing since closing at P52.39 exchange rate on March 23.
It traded weaker the whole day as it opened the session at P52.355 versus the US currency. It dipped to as low as P52.365, while its best showing for the day stood at P52.25.
Dollars traded sank to $620.21 million from the $757.2 million that switched hands on Monday.
Two traders said on Tuesday that the peso weakened as the dollar grew stronger overnight due to the rising US Treasury yields.
“The peso again lost its strength against the dollar, having boosted from increased US bond supply as the US Treasury continue to offer debt securities,” a trader said in an e-mail.
In a report from Reuters early Tuesday (Manila time), the dollar strengthened against a basket of currencies as the US 10-year Treasury yield hit its four-year high at 2.998% on Monday, nearing the psychological 3% level. — Karl Angelo N. Vidal