Philippine peso at 7-year low on political concerns


via – The Philippine peso hit a seven-year low on Monday, extending its losses into a third week as market participants worried about the impact of President Rodrigo Duterte’s policies on capital inflows, ratings and international relations.

Other emerging Asian currencies also slumped as risk sentiment soured, with market focus shifting to Washington politics ahead of the first debate between Democrat candidate Hillary Clinton and Republican Donald Trump.

The peso’s decline was accompanied by a more than 1 per cent drop in the Philippine stock index. The index has fallen nearly 5 per cent in two months.

The peso lost 0.6 per cent to 48.26 per US dollar (US$1=S$1.361), its weakest since September 2009.

Local importers scrambled for the greenback for payments, which further weakened a currency already impacted by sustained equity outflows. Foreign investors have been net sellers in Manila stocks over the past six weeks.

Philippine central bank Governor Amando Tetangco told Reuters on Monday the peso’s movements were owing to corporate requirements for dollars and reflected uncertainty about the Federal Reserve’s policy path Vishnu Varathan, currency strategist at Mizuho Bank, said there were concerns around the continuity of reforms that have helped the Philippine economy become one of the strongest in Southeast Asia.

“The uncertainty arises from two things. One is whether there could be ratcheting up of tensions on an international basis which could put some investors off,” Varathan said.

The second factor, he said, was the credit risk that ratings agencies have referred to, and which is critical to ensure foreigners stay invested.

“On both counts there could be a negative fund flows. That kind of precautionary positioning is creeping in,” Varathan said.

Philippine stock exchange data showed six straight weeks of net foreign selling of stocks beginning Aug 15, totalling 27.9 billion pesos (S$786.5 million).

Duterte, a former mayor, won the May elections after vowing to wipe out drugs and crime. The large number of killings in his war on drugs has drawn widespread international criticism, including from the United Nations, triggering angry responses from Duterte. His anti-American outbursts have startled investors.

Standard & Poor’s said last week the Philippines is unlikely to get a credit rating upgrade in the next two years, citing Duterte’s unpredictability and uncertainty over his domestic and foreign policies.

On Monday, the peso’s slide “picked up momentum after the break of 48”, said a senior Philippine bank currency trader in Manila who expects the currency to weaken to 48.50 to US$1.

The Philippine unit may see a minor chart support at 48.35, but it is likely to seen heading to around 49.00, analysts said.

Find more like this: Economy

  • What is Filipino architecture supposed to look like?
  • Dead Whale Found With 88 Pounds of Plastic Inside Body in the Philippines
  • The women who helped shape Philippine feminism
  • How to Retire in the Philippines
  • This play tells the urgent story of a Filipino comfort woman
  • Page 1 | 2 | 3 | 4 | 5 | 6 | 7


  • This play tells the urgent story of a Filipino comfort woman
  • Will ‘Sahaya’ be the first Pinoy series on Netflix?
  • Z-GIRLS, Z-BOYS with Pinoy members to debut in Korea
  • Marvel Comics introduces new characters; Filipino superhero to make waves
  • ‘The first Pixnoys’: Filipinos will finally see themselves in Pixar short film
  • MORE...


  • Showcase of PH culture, heritage
  • US and Philippines: Friends, Partners, and Allies
  • A Transgender Paradox, and Platform, in the Philippines
  • The Box That Brings Christmas to the Philippines
  • ‘Pinoy Aquaman’ swims 23 kilometers for peace in Mindanao
  • MORE...


  • Philippines records ‘all-time high’ 7.1M tourist arrivals in 2018
  • Philippines island Boracay reopens for test run following huge cleanup
  • Philippines closes ‘cesspool’ tourist island of Boracay
  • Boracay Set to Ban Tourists for Six Months During Island ‘Rehabilitation’
  • Boracay: the good, bad and ugly sides to Philippine island for tourists
  • MORE...


  • Filipino speed skater bags spot in 2020 Winter Youth Olympics
  • Pinoy gymnast Carlo Yulo earns historic qualification in worlds
  • Finding a way to bring the NBA to the Philippines
  • First Filipino table tennis Olympian Ian “Yanyan” Lariba dies at 23
  • Skateboarder Margielyn Didal wins 4th gold for Philippines
  • MORE...

    OFW News

  • DOLE suspends OFW deployment to Kuwait
  • Some OFWs turn to vlogging to beat loneliness, share life abroad
  • Overseas Filipino Bank to serve immigrants, workers
  • The ‘bagong bayani’ of the Philippines
  • Which countries pay OFWs the highest?
  • MORE...


  • Boracay Set to Ban Tourists for Six Months During Island ‘Rehabilitation’
  • Boracay: the good, bad and ugly sides to Philippine island for tourists
  • Luzon has greatest concentration of unique mammals
  • Mindanao plants 3M trees in an hour, challenges world record
  • Fighting for sharks in the Philippines
  • MORE...

    Pinoy Places
    and Faces