Philippine Peso Weakens Further to P62.78 to $1

The Philippine peso depreciated against the US dollar for the second straight trading day on Monday, closing at P62.78 to $1. This marks a 3.1 centavo decline from its previous finish of P62.749:$1 on Friday. The local currency's weakness comes as Federal Reserve Bank of Minneapolis President Neil Kashkari cited elevated inflation to warrant further tightening. Rizal Commercial Banking Corp. (RCBC) chief economist Adalberto V. Ricafort noted that Kashkari’s remarks, coupled with the latest Fed rate hike and elevated US Treasury yields, have boosted the attractiveness of the dollar. Ricafort anticipates the exchange rate to range between P62.65:$1 to P62.85:$1 on Tuesday. Meanwhile, the Philippine Stock Exchange index (PSEi) lost 12.12 points or 0.21% to close at 5,843.79, while the broader All Shares index shed 11.09 points or 0.34% to 3,266.71. According to Regina Capital Development Corp. head of sales Luis Limlingan, investors opted to pocket gains. "Market participants remained on the defensive as the ongoing exchange of threats between the US and Iran heightened geopolitical uncertainty and investor caution," he stated. "Concerns over a possible rebound in crude oil prices also kept sentiment subdued, given the potential impact on inflation and economic growth." More than 1.852 billion shares, valued at P6.867 billion, changed hands. Decliners led advancers, 115 to 78, while 62 issues were unchanged. — BM, GMA News