Peso sinks back to 57:$1 level

The peso weakened sharply against the dollar yesterday, sinking back to the 57:$1 level for the first time in two months following the Bangko Sentral ng Pilipinas (BSP)'s latest policy rate cut and renewed demand for the greenback.

- 

The peso closed at 57.45 against the dollar yesterday, after shedding 47 centavos from Wednesday's 56.98 finish, data from the Bankers Association of the Philippines showed.

This marked the peso's lowest close since March 26, when it settled at 57.69.

The local currency opened weaker at 57.10, which was also its intraday high, and hit an intraday low of 57.45 before closing at that level. Total volume surged by 44.1 percent to $1.83 billion from $1.27 billion in the previous session.

A trader attributed the peso's slide to a narrowing interest rate differential between the Philippines and the United States after the BSP trimmed policy rates by 25 basis points, bringing the benchmark rate to 5.25 percent.