Peso drops P0.055 vs. dollar

The peso opened the week with a loss as Friday's sell-off in global equity markets kept investors from betting on higher risk currencies.

 

The local currency dropped 5.5 centavos to 46.470:$1 from the previous 46.415. This ended the peso's winning streak in the run up to the US Federal Reserve's decision to keep interest rates steady last week.

 

"There was a slight risk aversion following the sell-off in the equity markets on Friday," Security Bank Corp. Senior Vice President Andre Ibarra said.

 

Wall Street ended lower on Friday after the US central bank's decision to delay the first interest rate hike in the world's largest economy in about a decade which highlighted concerns over a global slowdown, particularly in China. 

 

Some investors could have also taken advantage of the peso's stronger performance against the greenback last week to lock in on gains, Ibarra said. – VS, GMA News