Peso nears lowest in 5 years
The peso closed at a nearly five-year low amid losses among other regional currencies at the end of the week after weak Chinese data added to concerns over slowing growth in the Asia Pacific region.
The local currency lost 11 centavos yesterday to close at 45.49 to $1 from 45.38:$1. This followed a 14-centavo drop the day before. Yesterday’s close was the weakest since August 2010.
Despite the steep decline, the local currency still outperformed in the region, where most currencies have declined by much more. “After the rupee, we’re still the second-best performer,” BPI economist Emilio Neri Jr. said in an interview.
Other currencies in the region have declined by as much as 8 percent since the start of the year. The peso has lost 2 percent of its value since January, Neri said. Investors continue to “differentiate” the Philippines from other Asian markets due to strong macroeconomic fundamentals. “But there won’t be a decoupling,” Neri said.
The peso was weak all day, reaching an intra-day high of 44.405: $1 and a low of 45.50: $1 after opening at 45.43: $1. Volume rose to $644.70 million from Thursday’s $539.80 million.
