Peso weakens to P62.78:$1 - GMA Network
The Philippine peso depreciated against the US dollar for the second straight trading day on Monday, as the greenback was buoyed by hawkish statements of US Federal Reserve officials.
The local currency shed 3.1 centavos to close at P62.78:$1 versus last Friday’s finish of P62.749:$1.
Monday’s weakness comes as Federal Reserve Bank of Minneapolis Neil Kashkari cited the elevated inflation to warrant further tightening.
Rizal Commercial Banking Corp. (RCBC) chief economist Ricafort said Kashkari’s remarks, the latest Fed rate hike, and the elevated US Treasury yields have boosted the attractiveness of the dollar.
Moving forward, Ricafort said the exchange rate could range between P62.65:$1 to P62.85:$1 on Tuesday, September 22.
The Philippine Stock Exchange index (PSEi) lost 12.12 points or 0.21% to close at 5,843.79, while the broader All Shares index shed 11.09 points or 0.34% to 3,266.71.
According to Regina Capital Development Corp. head of sales Luis Limlingan, investors chose to pocket gains.
“Market participants remained on the defensive as the ongoing exchange of threats between the US and Iran heightened geopolitical uncertainty and investor caution,” he said in a separate mobile message.
“Concerns over a possible rebound in crude oil prices also kept sentiment subdued, given the potential impact on inflation and economic growth,” he added.
More than 1.852 billion shares, valued at P6.867 billion, changed hands. Decliners led advancers, 115 to 78, while 62 issues were unchanged. — BM, GMA News
