|
THE peso
on Wednesday continued to fall, losing 19.5 centavos as
a fresh wave of global credit concerns caused investors
to shy away from the local currency, traders said.
It
opened at P43.770 per dollar, reaching a high of P43.770
and plunging to P43.960 before settling at P43.945. The
peso closed at P43.750 on Tuesday. The trade volume
reached $688.58 million from Tuesday’s $667 million.
A
currency trader from a universal bank said that when
global credit concerns erupt, emerging markets are one
of the first hit by risk aversion.
“There
is still risk aversion so foreign investors do not
invest in the peso—they look for a safer haven. When
global credit concerns surface, emerging currencies are
one of the first hit [by risk aversion},” the trader
added.
Aside
from the present inflation fears griping the market, the
trader observed that remittances, which were supposed to
save the peso from depreciating, did not rush in as
expected. “Remittances were supposed to save the peso
but it did not. At this time of the year it was supposed
to be thick,” the trader said.
Crude-oil prices also continue to weigh the peso
especially after it reached a record high of $135 per
barrel in late May.
In an
interview with a radio station yesterday, Astro del
Castillo, the managing director of First Grade Holdings,
said that if oil prices “soften up,” the peso may
“adjust” to between P40 to P42 in July.
Oil
prices in the world market were steady yesterday at $128
per barrel. |
