Things are not looking good for the peso as it continues to dip against the US dollar in what is seen as its lowest exchange ratio in a decade.
Monday’s market initially opened on a slightly weaker note at P50.24 to $1 compared to Friday’s closing rate of P50.215 based on data from the Philippine Stock Exchange.
During the day, the peso managed to hit exchange rate extremes as low as 50.295 and as high as 50.24.
But the peso ultimately closed at P50.27 to $1 on Monday bringing the rate to a ten-year low since it closed way back on September 26, 2006 with a P50.32 to $1 ratio.
According to ING Bank Manila chief economist Joey Cuyegkeng, the weakening of the peso can be attributed to the turmoil in local politics coupled with US President Donald Trump’s anticipated speech before Congress.
“This set of political developments leading to intensified political noise result to cautious views tending to favor US dollar rather than the peso,” Cuyegkeng told ABS-CBN News.
Fortunately for the peso, it got much needed breathing room after Tuesday’s market closed at P50.21 to $1 due to last-minute dollar selling.
The peso breached the P50 to $1 exchange ratio for the first time this month since the market closed on November 16, 2006 with a P50.12 to $1 ratio.