Export slowdown hurts PHL peso

By Joann Santiago

MANILA, Nov. 10 (PNA) — The Philippine peso touched a six-year low against the greenback Tuesday due to combination of decline in exports and resurgence of expectations for a Federal Reserve rate hike in December.

It ended the day at 47.26 from the previous session’s 47.16, which a trader traced mainly to the report about the contraction of the country’s exports for September 2015.

The government reported that exports declined by 24.7 percent in the ninth month this year on lower global demand for Philippine products on account of the weakness in growth of major economies.

The trader said withdrawals in the local bourse, as investors shift their funds to the US, also disadvantaged the peso, which bucked regional trend.

The peso opened the day at 47.20, a depreciation against the previous day’s 47.10.

It traded between 47.27 and 47.15, bringing the day’s average at 47.26.

Volume of trade reached USD 768.6 million, slightly higher than the previous session’s USD 720.4 million.

For Wednesday, the currency pair is seen to trade between 47.10 and 47.30 and the trader expects the weakness to remain until the Federal Reserve decides on its rates next month.

Amidst the local unit’s slide against the dollar, Malacanang assured the public that the government was not remiss in addressing possible issues.

“Bangko Sentral continues to monitor market developments in line with its mandate to ensure monetary stability,” Presidential Communications Operations Office (PCOO) Secretary Herminio Coloma Jr. said Tuesday. (PNA)