Peso weakens to record-low P59.17

MANILA, November 13 ------ The Philippine peso hit a historic low of P59.17 to the US dollar at the close of Wednesday's trading. This is lower than its P59.13 close on October 28.

The peso has been described as one of the worst performers in Southeast Asia this month. The last time it tested the P59-to-the-dollar level was on December 19 last year. A former Bangko Sentral ng Pilipinas (BSP) official has said that bad governance is also scaring off investors, affecting the value of the peso.

The peso's depreciation has a significant impact on many sectors. While families of OFWs will stand to benefit from being able to get more pesos per dollar remitted, imports may also become more expensive. Fossil fuels are bought using dollars. A weaker peso also means that paying the country's foreign debts becomes more expensive.

Analyst Jonas Ravelas also said the peso's drop is driven by a "strong US dollar and weak local sentiment". "Global investors are flocking to safe havens, while domestic uncertainties arising from governance issues to delayed spending are shaking market confidence. A break to 60 is probable if these trends persist. The BSP has tools to stabilize the currency, but we need more than intervention—we need credibility, clear policy signals, and unity to restore market trust," he added.

In October, the BSP said the Philippines' foreign debt increased as the peso continued to weaken.

Source: news.abs-cbn.com