‘…peso depreciation translates to cheaper products in the world market for the country’s export sector’
The Philippine peso plunged to a new 14-year low against the U.S. dollar even as local stocks went up.
The local unit closed at 52.95 against the greenback, after shedding 25 centavos compared to last Friday’s finish at 52.70, registering its weakest level since 2004. Historically, the peso reached an all-time high of 56.34 in October 2004.
The Philippine Stock Exchange index (PSEi) climbed 0.40 percent, or 30.56 points, to 7,771.30 points.
The broader All Shares tracked the main index with a 0.31 percent increase, or 14.44 points, to close at 4,704.54 points.
Both Holding Firms and Mining and Oil registered the biggest gain with 1.24 percent each, followed by Industrial, 0.41 percent, and Services, 0.27 percent.
The Property counter, however, registered the highest loss with 0.92 percent, followed by Financials at 0.11 percent.
Advancers edged out decliners, 103 to 84, while 48 stocks remained unchanged as transactions reached 849 million shares amounting to PHP4 billion.
Weak peso good
for OFWs, export
Meanwhile, the weak peso is seen to benefit dollar earners, as well as families of overseas Filipino workers and exporters, industry analysts said.
The peso depreciation translates to cheaper products in the world market for the country’s export sector, while families of dollar earners in the Philippines will have more money in their pockets.
Speculations of another round of rate hikes in the US this week, as well as weak Philippine trade numbers, are adding pressure to the peso against the US dollar.
The US Federal Open Market Committee will be meeting on Tuesday and Wednesday to discuss policy rates, reports said.