The peso sank further against the greenback on Monday, weighed by on risk aversion over political uncertainties in the US and expectations of a Fed rate hike in December.
The Philippine currency slipped by 0.10 percent or 5 centavos to P49.83 to $1, its weakest in eight years since trading at P49.99:$1 on Nov. 20, 2008.
“The peso depreciated slightly today still because of risk aversion amid US political uncertainties and concerns over the possibility of a US interest rate hike next month,” said Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines.
He said the peso-dollar trading might still be influenced by worries about a hike in the federal funds rate.
“Profit-taking, however, might cap the dollar’s appreciation,” he added.