The Philippine peso sank further against the dollar on Thursday, following hawkish signals from minutes of the US Federal Reserve's June policy meeting and worries over the ceasefire deal between the United States and Iran.
The currency fell by 10 centavos to close at P61.605 per dollar from P61.505 on Wednesday, according to data from the Bankers Association of the Philippines.
The local unit opened Thursday's session sharply weaker at P61.62 versus the greenback, but later climbed to as high as P61.53, while its intraday low was at P61.64 per dollar.
Dollars traded increased to $1.258 billion from $1.164 billion previously.
The peso weakened after the latest Fed minutes hinted about a compelling case for policy rate hikes during the June meeting, a trader said.
Concern about high inflation mounted at the US central bank's meeting last month, as officials followed a more stripped-down policy statement, and a few participants said there was already a case to raise borrowing costs.
Fresh tensions between the US and Iran also dragged the peso, as some concerns were raised that the Middle East conflict could disrupt shipping through the Strait of Hormuz.
Additionally, sentiment turned negative as more organizations cut their Philippine economic growth forecasts, including the International Monetary Fund and the Asian Development Bank.
For Friday, the trader said the local currency could recover on profit taking and move between P61.45 and P61.70 a dollar, while another analyst said it could range from P61.50 to P61.70.
