THE peso yesterday fell to P43.68 per dollar from Friday’s close of P43.44 as demand from corporate buyers continued to fuel the US currency.

The local currency opened at P43.45, traded up to P43.45 and down to P 43.63 during the session. Volume rose to $504.95 million from Friday’s $495.50.

A currency trader from a commercial bank said corporate demand is expected to surge this week as companies settle their obligations, a situation that may further weaken the peso.

“We are already in the last week of May and corporate demand for dollars is expected to go up. The factors contributing to a weaker peso are still there, high inflation and high oil prices,” the trader said.

The trader said the central bank tried to smooth the peso’s volatility in yesterday’s trade by selling more dollars.

A trader from a universal bank said the peso remains vulnerable to high oil prices, which reached above $132 per barrel in the Asian market.

The trader also said there is risk aversion in Asian currencies because of inflation, especially now that the dollar is propped up by high commodity prices, making it hard for the peso to recover.

THE one-year Treasury-bill rate dropped by 6.9 basis points to 6.846 percent, the Bureau of Treasury reported on Monday.

RURAL banks are being pushed to the brink of extinction because of the global economic crunch, and the Bangko Sentral ng Pilipinas (BSP) must rescue the industry.

STATE-controlled Land Bank of the Philippines has approved the release of P1.05 billion in loan package to pay for infrastructure projects in the provinces of Davao del Norte and Compostela Valley.

THE peso yesterday fell to P43.68 per dollar from Friday’s close of P43.44 as demand from corporate buyers continued to fuel the US currency.