Peso posts more losses on positive US outlook

The peso further weakened on Monday as investors maintained a positive outlook on the US economy.

 

The peso declined by another 7 centavos to 45.56:$1 from 45.49 on Friday. The dollar has kept the local currency down for three straight days. 

 

The greenback maintained its strength despite the disappointing data on new home sales from the US. Figures released on Friday showed that only 482,000 new homes were sold in June, falling short of the projected 543,000.

 

The worse-than-expected figure is likely to wash down prospects for an interest hike in the US in September, as the data pointed to a possible weakness in the world's largest economy. 

 

"Investors chose to overlook last Friday's report that was in conflict with other recent data showing improvement in the housing sector. Since the outlook on the US economy remains positive, the US dollar appreciated," said MetisEtrade Inc. analyst Cherica Vicente. – Keith Richard Mariano/VS, GMA News