Peso weakens on foreign selling in Philippine shares

The Philippine peso failed to sustain its strength against the US dollar on Thursday, as dragged by foreign selling in local stocks.

The local currency lost 26.5 centavos to close at P52.545:$1 versus Wednesday's finish of P52.28:$1.

"Philippine peso continues to be pressured by foreign selling in the local equity market as well as corporate demand looking to secure FX now that spot is moving higher on general risk-off tone," Nicholas Antonio Mapa, senior economist at ING Bank Manila, said in an email interview.

According to data from the local bourse, foreign funds bought P3.147 billion of shares during the session and sold P4.895 billion for a net selling position of P1.748 billion.

"Most of emerging market currencies were on the backfoot with concerns about global recession mounting," said Mapa.

"Furthermore, corporates may have also decided to scramble to pick up dollars given analysts’ forecast for a weaker peso and disappointing overseas Filipinos remittance data," added Mapa.

According to data released by the central bank, personal remittances fell by 2.7% to $2.545 billion in June from the $2.615 billion the same month last year. — RSJ, GMA News