Peso sinks to P50:$1 level on import recovery
THE PESO sank to the P50-per-dollar level on Friday on data showing a continued recovery in imports and as investors awaited the US Federal Reserve’s latest signals on its policy path.
The local unit ended trading at P50.08 per dollar on Friday, shedding 20.5 centavos from its P49.875 close on Thursday, based on data from the Bankers Association of the Philippines.
Friday’s close is the peso’s weakest in more than a year or since June 23, 2020’s P50.19-per-dollar finish.
The peso opened Friday’s session at P50.10 versus the dollar. Its weakest showing was at P50.17, while its intraday best was at P50 against the greenback.
The peso weakened following the release of the country’s trade data showing a continued rebound in imports, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
The trade deficit stood at $2.76 billion in May, smaller than the $3.08-billion gap in April but still wider than the $1.31-billion shortfall a year earlier, based on data released by the Philippine Statistics Authority on Friday. Imports climbed by 47.7% to $8.65 billion in May from a year earlier. Meanwhile, exports increased by 29.8% to $5.89 billion.
Meanwhile, a trader attributed the peso’s depreciation to cautious sentiment ahead of the Fed’s submission of its monetary policy report to the US Congress later on Friday. — LWTN
