Peso breaches 54 per dollar level.MANILA, July 23 Kyodo
The Philippine peso Noun 1. Philippine peso - the basic unit of money in the Philippines; equal to 100 centavos
centavo - a fractional monetary unit of several countries: El Salvador and Sao Tome and Principe and Brazil and Argentina and Bolivia and Colombia and Cuba and breached the 54 to the dollar mark Wednesday due to banks covering short positions and continued corporate dollar demand, dealers said.
The peso closed at 54.025, its lowest since late March when it closed at 54.30. It traded at a volume of $155.50 million. Tuesday's closing was at 53.85.
Thio Chin Loo, a currency analyst with BNP Paribas BNP Paribas (Euronext: BNP, TYO: 8665 ) is one of the main banks in Europe and France. It was created on 23 May 2000 through the merger of Banque Nationale de Paris (BNP) and Paribas. , said in a television interview the weakening of the peso has more to do with the strengthening of the dollar than with a downward trend of regional currencies.
''The mood has been towards a better sentiment on the U.S. dollar and that also expressed against the peso,'' Loo said.
Other traders, meanwhile, attributed the weakening to banks trying to prop up positions during the lean period, as well as the import season and continued corporate dollar demand.
One said he expected the peso weakness to last until September Until September is a 1984 romantic drama set in France. It stars Karen Allen as an American tourist in Paris who falls in love with a married Frenchman (Thierry Lhermitte). External links and projected a low of 54.20 to the dollar and a resistance level of 53.85.
The Central Bank said earlier it forecasts the peso to settle in at the 53 to 53.50 to the dollar level by year-end.