Peso drops to new 10-month low

The peso dropped to a new 10-month low against the dollar on Thursday due to market worries over possibilities of a US government shutdown.

The local currency closed at P56.98 versus the dollar on Thursday, weakening by three centavos from Wednesday’s P56.95 finish, data from the Bankers Association of the Philippines’ website showed.

This was the peso’s weakest finish in over 10 months or since its PHP 57.375-per-dollar finish on Nov. 22, 2022.

The local unit opened Thursday’s session stronger at PHP 56.888 per dollar, which was also its intraday best. Its weakest showing was its close of PHP 56.98 against the greenback.

Dollars traded went down to USD 980.6 million on Thursday from USD 1.35 billion on Wednesday, Bankers Association of the Philippines data showed.

“The peso weakened anew due to renewed market worries over the possibility of a US government shutdown over the weekend,” a trader said in an e-mail.

The peso was also dragged down by the dollar’s continued strength and high global crude oil prices recently, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

For Friday, the trader said the peso could depreciate further ahead of potentially stronger US producer inflation data.

The trader sees the peso moving between PHP 56.80 and PHP 57 per dollar on Friday, while Mr. Ricafort sees it ranging from PHP 56.85 to PHP 56.99. — AMCS