MANILA – Risk aversion has weakened the Philippine peso to the 51-level to a dollar Friday morning. The local unit touched the 51.08 mid-trade, its weakest in the day’s first half trading.
It opened the day at 50.90, a big drop from the previous day’s 50.65 start.
Its weakest level in the morning session was 51.08 while its opening level was its strongest, bringing the session’s average to 51.02.
Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. said in a Viber message to reporters that the central bank continued to monitor market developments.
“We’re constantly monitoring peso developments for excessive short-term volatility not consistent with underlying economic fundamentals and take appropriate action when necessary,” he said.
Traders attributed the recent weakness of the peso to risk aversion due to recent spats between officials of the US and North Korea.
Amid this weakness, Espenilla remains optimistic on the local currency. “We recognize that the market is also often self-correcting,” he added.
BSP maintains a market-determined exchange rate but the central bank joins in the market to address extreme volatility.