The Philippine peso weakened further against the US dollar on Wednesday, trading closer to an 11-year low as the country’s negative external position dampened demand for the local currency.
The local unit slipped by 17 centavos to close at P50.940:$1 from P50.77:$1 on Tuesday.
It was the peso’s weakest since settling at P50.945:$1 on August 30, 2006.
“Most likely this news: PH June posts balance of payments deficit of $569 million,” said BDO Unibank market strategist Jonathan Ravelas.
Bangko Sentral ng Pilipinas data showed the balance of payments hit a deficit of $569 million in June, wider than the $59 million deficit in May but reversing the $418 million surplus in June 2016.
The deficit in June was the widest since it registered at $1.67 billion in November last year.
For the first half of 2017, the payments position swung to a deficit of $706 million, a surplus of $634 million a year earlier.
The peso first touched the P50:$1 level on November 24 last year as bets on interest rate hikes in the US, which actually happened in December, favored the dollar. It depreciated by 5.35 percent against the dollar in 2016.