THE peso hit an over two-year low on Wednesday, weakening by 10 centavos to end the day at P58.91 against the dollar.
It was the currency’s lowest close since the P58.94:$1 recorded on Oct. 20, 2022. That month was also when the peso hit an all-time low of P59 against the greenback.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened as the dollar continued to strengthen against the major global currencies.
“The US dollar/peso exchange rate is also higher amid some geopolitical risk related to the Russia-Ukraine war lately,” he added.
A trader said that concerns over who US President-elect Donald Trump would pick as Treasury secretary had also weighed on the currency.
The peso could potentially hit P59:$1 “as growing geopolitical concerns and uncertainties on Trump policies continue to drive demand for the greenback,” he added.
The currency opened at P58.9 to the dollar and ranged from P58.77 to P58.92. Volume narrowed to P1.094 billion from P1.773 billion a day earlier.
The stock market, on the other hand, rose for a fourth straight day and closed in on a return to the 7,000 level.
The benchmark Philippine Stock Exchange index (PSEi) added 172.44 points, or 2.54 percent, to 6,975.63, while the broader All Shares gained 35.23 points, or 0.92 percent, to 3,847.41.
Philstocks Financial Inc. research manager Japhet Tantiangco said “the market was mainly driven by the reassurance from the Bangko Sentral ng Pilipinas that the Philippines’ monetary policy is still in its easing phase with a possibility of a 100 basis points rate cut in total next year.”
“Foreign investors also turned buyers on the net helping the market climb,” he added, noting that “net foreign buying for the day amounted to P82.21 million.”
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said reports that President Ferdinand Marcos Jr. had talked with Trump allowed the PSEi to post “its biggest gain since February of 2023.”
All sector indices closed the day in the green with holding firms up the most by 3.26 percent.
On a company basis, however, decliners outnumbered gainers, 110 to 88, while 59 were unchanged.
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