Peso breaches 54 per dollar level.

MANILA, July 23 Kyodo

The Philippine peso 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, 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  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.