Peso breaches 51:$1 level in morning trade

The Philippine peso breached the P51 mark against the dollar during the morning trade on Friday amid concerns about the escalating tensions between the US and North Korea.

The local unit reached an intra-day low of P51.08:$1, weaker by 28.5 centavos from P50.795 on Thursday, after it opened at P50.90. It was the lowest for the peso since August 29, 2006, when it closed at P51.050.??

"The tensions between North Korea and the US are affecting the sentiments of investors," said a foreign exchange trader from a local bank.

"And so far, we haven't seen intervention from monetary authorities thus the peso continues to depreciate against the dollar," the trader noted.

In a text message to reporters, Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. said the central bank is closely watching the foreign exchange market.

"We're constantly monitoring peso developments for excessive short-term volatility not consistent with underlying economic fundamentals and taking appropriate action when necessary," Espenilla said.

"We recognize that the market is also often self-correcting," he added. — VDS, GMA News