The peso slumped to its lowest level in eight years against the greenback on Monday and breached the P49:$1 territory after a Fed official implied that the Federal Reserve will hike interest rates next month.
The Philippine currency lost 0.51 percent or 25 centavos at P49.20 to $1. It was the peso’s weakest level since Dec. 4, 2008, when it hit P49.37:$1.
The peso opened at P49.01 to $1 on Monday from P48.95 on Friday, before trading between P49 and P49.20 against the dollar.
“Fed Vice Chairman Stanley Fischer had stated in a conference that the central bank “appears reasonably close to achieving both the inflation and employment components of its mandate,” according to Metrobank Research.
“He also added that ‘financial market conditions have generally improved relative to earlier in the year,’ citing market turbulence from Brexit as short-lived. Implied probability of December hike currently at 84 percent,” it added.
The transaction volume reached P661 million at the Philippine Dealing System compared with P707 million on Friday.