Peso slides further to 49.78 to $1 on US rate hike fears

Following US Federal Reserve Chair Janet Yellen’s pronouncement that a rate increase would be “relatively soon,” the peso further fell to a fresh low in nearly eight years against the greenback Friday.

The slide to 49.78:$1 from Thursday’s 49.56:$1 remained the weakest since the close of 49.83:$1 on Nov. 24, 2008, at the height of the global economic crisis.

At the Philippine Dealing System, the peso reached an intraday low of 49.805:$1 and a high of 49.70:$1.

The total volume traded slightly declined to $812.9 million from $821.5 million last Thursday.

Bangko Sentral ng Pilipinas Deputy Governor Diwa C. Guinigundo also Friday said monetary authorities “remain attentive” while they keep on monitoring the foreign exchange situation.

“The exchange rate is normally our first line of defense in adjusting to new shocks to the peso and the rest of the economy. Given the uncertainties surrounding the new leadership in the US, Brexit, US Fed interest rate hike and China slowdown, the peso is now our adjustment tool. As long as the volatility remains manageable and speculative plays are held at bay, we should allow the adjustment to continue,” Guinigundo said in a text message to reporters.