Philippine Peso weakens vs. US Dollar



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Manila, Philippines - Contrary to the report of Bank of America that the Philippine peso could hit 30 plus-level this year, exchange rate versus US Dollar continues to weaken at 43-to-$1 level this month. Above 43-mark is said to be the weakest since June 26, 2012 when it hit 42.47.

Read: Peso seen to hit 39:$1 by 2013

Analysts say investors continued to dump risky assets amid speculations the United States may withdraw its stimulus measures as the world's largest economy shows signs of recovery. American consumer confidence rose to a five-year high of 76.2 in May.

The expensive valuation of the local stock market was likewise cited as another key factor behind the selldown.

Exchange rate today, June 12, 2013 stood at 43.22: 1$. Almost close to the June 8, 2012 value at 43.27 and expected to weaken up to 45-level.

The Philippine Stock Exchange index (PSEi) stood at 6,656.52, down 3.19% as of 12 noon yesterday. The PSEi was the worst performer among Asian markets, on poor exports and jobs figures.

Social Media reactions

On Tuesday, the news got mixed reactions from netizens and even trended on the microblogging site Twitter and a much-talked on Facebook.

It's a good news for those who have remittances in the Philippines as their money will be valued more. Its also beneficial to the export side.

However, the effect is opposite on the importation of good and services.


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