Peso sinks to 50.600 vs US dollar
The Philippine peso weakens further against the US dollar. AFP FILE PHOTO
The peso weakened further against the US dollar on Wednesday, closing at 50.600 in another almost 11-year low.
Hitting an intraday low at the same value against $1 and a high at 50.470, the local currency opened at 50.540, slightly weaker than Tuesday’s close of 50.520.
The total volume traded dipped slightly to $507 million from Tuesday’s $540 million.
First Metro Investment Corporation, the investment banking arm of the Metrobank Group, maintained its peso-dollar forecast of an average of P51 against the US dollar on the back of the strengthening US economy.
“We’re seeing that the US economy – and surprisingly, EU and Japan, are doing better. That means that the [US] dollar is expected to be stronger, even [it temporarily] shows some weakness,” economics professor Victor A. Abola from the University of Asia & the Pacific.
“But with the ten year bonds in the US rising already by less than 20 basis points, that’s a clear sign of being able to attract more funds to the US,” Abola added. – Frances Josephine Espeso
