The value of the Philippine peso against the US dollar fell on Thursday’s trading to P50.53 per greenback.
The exchange rate was the lowest for the peso in almost 11 years since Sept. 11, 2006 though it was a little change from the 50.50 on Wednesday’ close of currency trading.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo told reporters Thursday that investors’ expectations for normalization in US interest rates continued to back the US dollar, thus, the weakness of the peso.
Corporate demand along with flights to safe haven assets on expectations of sustained hikes in the Federal Reserve (Fed) rates continued to hurt the local currency, according to a trader.
The value of the local currency unit started at 50.43 Thursday, down from the 50.32 in the previous session. The trader said the peso value was affected by hawkish statements from Fed officials, who indicated sustained gradual rate increases given the improvement in US economy.
It was able to strengthen to 50.38 but was pulled to 50.57, resulting to an average of 50.46.
The volume peso traded on Thursday reached $564.7 million, more than half lower than Wednesday’s $1.279 million.
The currency pair is seen to trade between 50.40 and 50.60 Friday. (PNA)
credit: Pixabay
