MANILA – The Philippine peso plunged further to its weakest level against the dollar in almost 12 years on Wednesday, dragged by geopolitical concerns overseas.
The local currency depreciated by 27.5 centavos to close at P52.47:$1 from Tuesday’s finish of P52.195:$1.
This is the second time this week that the local currency tested the 11-year low of P52.745 recorded on July 19, 2006, after it closed at P52.465:$1 on Monday.
According to Union Bank of the Philippines chief economist Ruben Carlo Asuncion, Wednesday’s depreciation was brought about by geopolitical concerns overseas.
“It’s a lot more of external happenings. Trump commented on NoKor talks as something unsure that has left unnerving feelings for investors,” he said in an email interview.
US President Donald Trump just recently said there was a “substantial chance” that his planned meeting with North Korean leader Kim Jong Un on June 12 would not push through, following concerns that Kim is unlikely to give up nuclear weapons.
“I see the trend toward weakening as a lot of uncertainties continue to unravel. However, a lot of the volatility drivers are coming from the outside,” Asuncion said.
Looking ahead, Asuncion said the Philippine peso is expected to trade at P52.20 to P52.70 to a dollar in the short term. (GMA News)
