The Philippine peso sank to the P48.00-per-dollar level on Monday, closing at seven-year lows as investors continue to withdraw funds from P...
The Philippine peso sank to the P48.00-per-dollar level on Monday, closing at seven-year lows as investors continue to withdraw funds from Philippine markets.
The local currency closed at P48.250:$1, down 26 centavos from 47.990 on Friday.
It was the weakest since the Philippine unit closed at 48.050 on September 16, 2009, at the height of the global financial crisis.
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| Source: http://www.tradingeconomics.com/philippines/currency |
"I think it's the continuous concern of foreign investors. Our equity index was down another 1 percent for the day ... Foreign investors have been pulling out their money, affected by recent sociopolitical concerns," a currency trader, who asked not to be named, said in a phone interview.
To date, the stock exchange has suffered 22 straight sessions of net foreign selling.
To date, the stock exchange has suffered 22 straight sessions of net foreign selling.
Total foreign buying amounted to P3.898 billion on the Philippine Stock Exchange, against foreign selling of P3.915 billion for a net foreign selling of P16,907,778.32 on Monday.
Standard and Poor's (S&P) Global Ratings said last week that sociopolitical concerns were starting to dent the confidence of international investors.
Standard and Poor's (S&P) Global Ratings said last week that sociopolitical concerns were starting to dent the confidence of international investors.
(I)nternational investors may be getting worried about potential diplomatic complications and short-term law and order issues on the ground," S&P said in the September 2016 issue of "Asia-Pacific Economic Snapshots."
The Department of Finance (DOF) on Monday, however, downplayed such assessment, saying that international investors remain confident about the administration of President Rodrigo R. Duterte.
"Market players are also pricing in a rate hike in December. This is a seven-year high for the dollar," the currency trader noted.
The Federal Open Market Committee (FOMC) last week decided to keep rates unchanged for the mean time but signaled it could tighten monetary policy come December when it meets for the last time this year.
The Bangko Sentral ng Pilipinas (BSP) noted the peso was weakened by the uncertainty surrounding the Fed's next move.
"The peso movement reflected the continuing uncertainty about the US Fed's next policy action, just like the other regional currencies, plus strong foreign exchange demand for fixing, and corporate requirements," BSP Governor Amando M. Tetangco, Jr., said in a text message to reporters.
"Market players are also pricing in a rate hike in December. This is a seven-year high for the dollar," the currency trader noted.
The Federal Open Market Committee (FOMC) last week decided to keep rates unchanged for the mean time but signaled it could tighten monetary policy come December when it meets for the last time this year.
The Bangko Sentral ng Pilipinas (BSP) noted the peso was weakened by the uncertainty surrounding the Fed's next move.
"The peso movement reflected the continuing uncertainty about the US Fed's next policy action, just like the other regional currencies, plus strong foreign exchange demand for fixing, and corporate requirements," BSP Governor Amando M. Tetangco, Jr., said in a text message to reporters.
(Source)
