The Philippine peso weakened to P49.995 against the US dollar in Wednesday trading on the Philippine Dealing Sytem, the day after President Rodrigo Duterte declared martial law for Mindanao, down P0.175 from Tuesday’s P49.82:$1.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. pointed out that other currencies in Asia have also been depreciating.
“Again, this is more of the behavior of the US dollar affecting the currencies in Asia. You might know that the rate of weakening of the peso is somewhat higher than other currencies but this is because of the cautiousness,” Tetangco said, referring to traders’ reaction to the statement of President Rodrigo Duterte that he has declared martial law for Mindanao.
“There was also legitimate corporate demand that affected the movement of the peso this morning,” Tetangco said. “But overall it remains stable.”
Asked if he sees a need at some point for the central bank to be in the market, Tetangco said: “Our policy is to allow market forces to determine the rate. But if there are very sharp fluctuations, we may send signals to the market,” he said.