At 0245 GMT, Philippine importers were buying the USD/PHP (PHP=PDSP) on dips, with the pair expected to find support near 42.40. The USD/PHP has held above this level since August 5.
The USD/PHP fell below 42.40 last Wednesday but closed above that level for the day. The pair declined 0.4% to 42.46, after hitting a low of 42.41.
A bank trader in Manila stated, "Although positive risk sentiment is slowly warming up, traders remain cautious. I expect minor support at 42.40 for now; if the USD/PHP breaks through this level, it will test 42.25-42.20."
The 61.8% Fibonacci retracement level of the USD/PHP's rally earlier this month is located at 42.24.
