Peso sinks further as US politics, rate hike weigh


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.


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