Peso drops to fresh 11-year low of 52.465
The peso fell to a fresh 11-year low against the greenback on Monday due to the widening trade deficit, higher oil prices and an array of global developments that affect financial markets.
The peso lost P0.13 to close at 52.465 from 52.33 Friday. It was its weakest level in over 11 years, or since 52.745 on July 19, 2006. Total volume traded reached $705 million, higher than $691 million Friday.
The peso fell to an all-time low of 56.45 in August 2004
ING Bank Manila senior economist Joey Cuyegkeng earlier said the factors pulling down the peso were higher crude oil prices due to political risks surrounding the withdrawal of the US from the Iran nuclear deal and the recent Israeli attacks on Iran installations in Syria.
“Net oil importing economies like the Philippines are affected and partly seen in 9the peso),” Cuyegkeng said.
He also said that the Philippines had returned to a situation of twin deficits—fiscal and current account.