Peso falls to 53.27:$1; stocks plummet again
The peso on Thursday further weakened against the US dollar, posting a fresh 12-year low after the US Federal Reserve raised interest rates again, the second time this year.
The peso lost P0.04 to close at 53.27 from 53.23 on Wednesday. It was its weakest level since the 53.55 on June 29, 2006. Volume turnover reached $796.45 million, higher than $773 million Wednesday.
The stock market also declined Thursday along with the rest of Asia after the Federal Reserve hiked interest rates and signaled a more hawkish tone for future moves, while US President Donald Trump stoked trade war fears by suggesting he will hit China with fresh tariffs.
The Philippine Stock Exchange Index dropped 73.44 points, or 1 percent, to 7,529.54 on a value turnover of P12.3 billion. Losers beat gainers, 110 to 76, with 57 issues unchanged.
The peso opened trading weaker at 53.30 and at one point touched 53.37, the low for the day.
Astro del Castillo, president and managing director of First Grade Finance Inc., said the Fed’s latest move made dollar assets more attractive and buoyed the greenback against other currencies.