MANILA — The Philippine peso fell to a record low of 60.10 against the US dollar on Thursday, while the local stock market retreated as investors reacted to global economic signals and geopolitical tensions.
The decline came after the US Federal Reserve decided to keep interest rates unchanged, triggering market volatility and weighing on the local currency.
At the same time, the Philippine Stock Exchange index (PSEi) dropped 0.56 percent to 6,018.62, ending its two-day advance. The All Shares index likewise slid 0.56 percent to 3,344.87.
Luis Limlingan, head of sales at Regina Capital Development Corporation, said the market turned negative due to heavy selling pressure early in the session.
He added that concerns over developments in the Middle East, which continue to drive fluctuations in oil prices, also dampened investor confidence.
The peso weakened sharply from its 59.52 closing rate the previous day to finish at 60.10 per dollar.
According to Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., the currency’s drop was largely a reaction to the latest geopolitical developments.
He described the movement as a “knee-jerk reaction” following Iran’s recent strike on Qatar’s energy facilities, which heightened fears of a broader regional conflict.
Ravelas warned that should tensions escalate further, the peso may remain above the 60-per-dollar level.
During Thursday’s trading session, the peso opened at 59.90, weaker than Wednesday’s 59.68 opening rate. It traded between 59.90 and 60.40, with the day’s average exchange rate reaching 60.12.
Foreign exchange trading volume rose to USD2.43 billion, compared with USD1.77 billion previously.
On the stock market, only the Industrial sector recorded gains, edging up 0.14 percent, while all other sectoral indices ended in negative territory.
The Mining and Oil sector suffered the biggest loss, plunging 6.70 percent.
Total trading volume reached 1.87 billion shares, with 133 stocks declining, 61 advancing, and 55 remaining unchanged.
elamigo/xf
