Philippine Peso Falls a Sixth Day on Post-Holiday Dollar Demandby
Currency in longest run of losses since October 2014
Political risk before poll not a factor: East West Banking
The Philippine peso fell for a sixth day, the longest losing streak since October 2014, on speculation dollar demand from local companies at the start of the year is driving it lower.
The currency closed down 0.2 percent at 47.545 a dollar in Manila, according to the Bankers Association of the Philippines. It has lost 1.3 percent in a six-day streak. The country’s financial markets were closed on Dec. 24 and 25 and then from Dec. 30 to Jan. 1.
The peso was among the best-performing emerging-market currencies over the last 12 months as remittances and the Philippines’ resilient economy cushioned it from the impact of global headwinds. Filipinos head to the polls in May to elect a new president with the incumbent, Benigno Aquino, prohibited from running for another six-year term.
“I heard there were corporate requirements for dollars,” said Jose Emmanuel Hilado, senior vice president at East West Banking Corp. in Manila. “We had prolonged holidays. I wouldn’t attribute it to political risk because of the elections and nothing has changed in the fundamentals in the last few weeks.”
The peso will probably trade within a range of 47 to 48.5 a dollar this year, Hilado said.
Government bonds fell for a third day. The 10-year yield rose 10 basis points to 4.29 percent, according to an end-of-day fixing by Philippine Dealing & Exchange Corp.