By examining the percentage weights of each variable that could contribute to the occurrence and end of pure arbitrage conditions, we find that the most important initiative change occurs in the domestic spot currency market
, while the domestic interest rate market plays the most leading role in the end phrase ("exit") of pure arbitra ge conditions.
As the spot currency market
opened its first trading day of the week, the peso was quoted lower by eight centavos at P45.38 from Friday's closing rate of P45.30 and sustained its drop to hit an intra-day low of P45.45, largely due to the pull out of investors from emerging markets like the Philippines.
The central bank said that it would extend daily dollar purchases for two months in the spot currency market
to control the appreciation of the peso.