President Estrada, however, gave assurance that the latest fall of the peso was just a "temporary " development due to a series of bomb attacks that rocked Manila at the weekend.
"I appeal to the businessmen to help one another here because if we don’t help each other, we all shall suffer, especially the poor people," the President said.
The peso had slipped to a new record low of 52 before recovering to end at 51 against the dollar on Tuesday.
Traders said the peso strengthened in early trade yesterday amid perceptions it had been oversold before negative sentiment once again drove the currency lower.
"If you look at the fundamentals, you’re looking at a weaker peso," a local bank trader said.
Investors were mostly awaiting the verdict of the ongoing corruption trial of President Estrada in the Senate.
A foreign bank dealer said the peso would be weak as dollar in flows from overseas Filipino workers during the Christmas season had dried up.
The peso yesterday moved within the volatile range of 50.65 to 51.17, averaging 51.025 on a volume of $128.5 million.
Meanwhile, the Bangko Sentral ng Pilipinas (BSP) is ready to defend the peso should it continue to depreciate to the 53 to 54 level, industrialist Raul T. Concepcion said yesterday.
"BSP Governor Buenaventura told me that the BSP would start defending the peso should it slide to the 53-54 to $1 level," Concepcion said.
"At that level, even business would not be willing to buy. Instead, business would just temporarily shut down their businesses and wait for things to improve," he added. – Marichu Villanueva, Marianne Go