Peso Falls to 51.34:$1 – the Weakest in the Past 11 Years

Unfortunately, the peso further weakened to anew almost 11 year low against the US dollar, falling to 51.34:$1.

After 11 years, the Philippines peso unfortunately weakened, falling to 51.34:$1 from 51.08:$1 on Monday.

On Tuesday, it further falls to 51.38:$1, being the weakest close since August 25, 2006.

Based on the Philippine Dealing System, the peso touched an intraday low of 51.35:$1 and a high of 51.13:$1 upon opening at 51.20:$1.

The total volume traded leaped to $659 million from $291.5 million from Monday.

In a note released by Metrobank to its clients, it stated as follows and we quoted:

“This week, it goes to be seen if risk aversion from geopolitical tensions will push the Philippine peso-US dollar pair to new year-to-date highs as we have tested and broken the pivotal level of 51:$1.. Even amid a slew of top-tier economic data, markets may be forced to brush them aside as geopolitical fears take the center stage.. With new fiery rhetoric coming out of Washington and North Korea, this week’s Federal Open Market Committee minutes may not hog the spotlight given the increased demand for safe-haven bets such as the US dollar, the Japanese yen and the Swiss franc.. This week, the initial range of 50.7-51.7:$1 should hold,”

Metrobank Research

Metrobank also warned its investors to continue to be wary on unpredictability this week and expect the dollar-peso trade to be easily influenced by surprise headline news.

Aizelle Joe