Grabe! Peso Crashes Past ₱60 Per Dollar — First Time Ever as Markets Tumble
The Philippine peso smashed through the ₱60-per-dollar barrier for the first time in history on Thursday, plunging to ₱60.40 during intraday trading as the US Federal Reserve's decision to hold interest rates high continues to supercharge the dollar against emerging market currencies.
The Philippine Stock Exchange index (PSEi) dropped 36.84 points or 0.6 percent to close at 6,018.62. Mining stocks led the selloff, while industrial shares were the only ones in the green. Out of 249 stocks traded, 133 ended lower, 61 gained, and 55 stayed flat — clearly a risk-off day sa market.
"The Philippine market ended in the red following strong selling pressure early in the session, driven by the peso's drop to a record low against the US dollar after the Fed kept interest rates unchanged," said Luis Limlingan, managing director at Regina Capital Development Corp. He added that the Middle East conflict is keeping oil prices volatile, further dampening investor appetite for riskier assets.
Rizal Commercial Banking Corp. chief economist Michael Ricafort warned that the historic peso weakness could push domestic prices higher since the Philippines imports most of its fuel and essential goods. A weaker peso means pricier imports — and that spells trouble for inflation, which the Bangko Sentral ng Pilipinas is already struggling to keep within target.
Investors also liquidated positions ahead of the long Eid'l Fitr weekend, wary that geopolitical developments could hit while markets are closed. Despite the bloodbath, analysts noted the PSEi's ability to hold above 6,000 suggests there's still some support at current levels. But one thing's clear: the ₱60 barrier is broken, and the question now is how much further it falls.
Source: Manila Bulletin
