Peso slides to P49.56 to US dollar as investors seek safe zone

FILE PHOTO

MANILA — The peso further slid Thursday as the US dollar — considered a safe haven by investors amid uncertainty — remained strong even as the government announced that the economy grew at a better-than-expected pace in the third quarter.

The domestic currency weakened to 49.56:$1 from 49.35:$1 last Wednesday. Thursday’s close was the weakest since Nov. 24, 2008’s 49.83:$1.

At the Philippine Dealing System, the peso reached an intraday low of 49.56:$1 and a high of 49.22:$1 after opening at 49.36:$1.

The total volume traded jumped to $821.5 million from Wednesday’s $666.5 million.

“The peso continued to fall with the chances for a Fed rate hike increasing in reaction to Fed comments overnight. Investors now turn their attention to Janet Yellen’s speech tonight in the US Congress,” a trader from a foreign bank said.

The government also reported on Thursday, that the country posted a gross domestic product (GDP) growth of 7.1 percent during the first three months of the Duterte administration.

The GDP expansion in the third quarter was the fastest since the 7.5-percent growth recorded in the second quarter of 2013.

The Philippine economy grew faster than most of its Asian neighbors such as China, Vietnam, Indonesia and Malaysia during the July to September period.  SFM