MANILA, Philippines - The peso weakened anew yesterday, losing 12.5 centavos to hit a new seven-year low on rising expectations of a rate hike in the US.
The local currency closed at 48.525 from Friday's 48.44 to $1. The peso opened weaker at 48.50 and depreciated to an intraday low of 48.55. It hit an intraday high of 48.45 to $1.
Volume amounted to $362.7 million yesterday from $573.1 million last Friday.
The peso has emerged as the worst performing currency in the region, shedding four percent in September alone due to uncertainties brought about by the impending interest rate hike by the US Federal Reserve.
The external headwinds were aggravated by developments in the Philippines as President Duterte lambasted US President Barack Obama, UN Secretary General Ban Ki-moon and the European Union for meddling in the governments Peso all-out campaign against illegal drugs.
In its weekly review, the Bank of the Philippine Islands (BPI) said the dollar continued to end stronger against other major currencies as expectations of US Fed rate hike increased throughout the week.
The bank said excerpts from minutes of the US Fed meeting in September include Many members remarked that there were few signs of emerging inflationary pressures or that progress on inflation had been slow and a substantial majority now viewed near-term risks to the economic outlook as roughly balanced.
"Similarly, the peso would likely remain volatile in anticipation of said US initial jobless claims and its effect on the likelihood of the US fed rate hike," BPI added.source:philstar