LOWEST IN 3.5 YEARS: Peso weakens to P53:$1 on stock market decline

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Peso weakens to P53:$1 on stock market decline

Friday’s peso exchange rate closing to a US dollar is the weakest in three-and-a-half years when the local unit ended at P53.10:$1 on December 20, 2018.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso’s weakness was due to the “decline in the local stock market.” The local stock barometer Philippine Stock Exchange Index lost 228.85 points or 3.38% to close at 6,539.04, its weakest since May 17, 2022 when it closed at 6,594.66.

Ricafort said the peso’s plunge was due to the net foreign selling of $23.6 million in the local bourse “after the OECD reduced its global economic growth estimates, a day after a similar move by the World Bank.”to around 3% this year due to the impact of Russia-Ukraine war on food and energy prices.

Philstocks Financial senior analyst Japhet Tantiangco said inflation concerns amid the elevated oil prices and weakening peso also continued to weigh on investor sentiment.—LDF, GMA News

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