The peso on Friday depreciated to a new record low against the US dollar as investors sought the safety of the greenback.
The peso shed P0.35 Friday to close at 56.77 per dollar from 56.42 on Sept. 1. The peso opened weaker at 56.5 and at one point touched the 56.9 level.
“The peso exchange rate [is] weaker vs. the US dollar by 0.35 or 0.6 percent to close at a new record 56.77 [though eased from the new intraday record of 56.90] amid the stronger US dollar vs. major global currencies,” Michael Ricafort, chief economist of Rizal Commercial Banking Corp., told Manila Standard.
Ricafort also mentioned as a factor “the benchmark 10-year US Treasury yield at a new two-month high of 3.25 percent amid more hawkish Fed signals.” “However, this is offset by global crude oil prices near 7-month lows,” Ricafort said.
Bangko Sentral ng Pilipinas Governor Felipe Medalla also said Friday the movement in the exchange rate was due mainly to a stronger dollar.
“There is no peso problem, but a dollar problem,” he said.
