MANILA - The peso weakened on Friday to its lowest level since January 26, as regional currencies tracked a weak yen following the US Federal Reserve's decision to hold interest rates.
The peso weakened to P48 to the dollar in intra-day trade before closing at P47.99 due to sustained equity outflows.
Foreign portfolio investments posted net outflows of $600,000 on Thursday, bringing the weekly total to $34.3 million and the monthly total to $344.8 million, according to Bloomberg data.
Philippine shares closed at 7,723.60 on Friday, down 38.75 points or 0.50 percent.
Bangko Sentral Governor Amando Tetangco Jr. on Thursday said the recent weakness in the peso is due to policy meetings held by European Central Bank, Bank of Japan, and the US Federal Reserve.
"It is normal price action that in the run up to these meetings, volatility heightens and markets become defensive and take profit on positions," the governor said.
"There are also sociopolitical factors. But in those it is important to remember that the economy has sound macro fundamentals that have been built on strong institutions," he added.