Peso plunges to 51.60:$1 in morning trade

The Philippine peso touched its weakest level in nearly 11 years during the morning trade on Wednesday as strong retail sales in the US boosted the dollar.

The local currency hit an intra-day low of P51.60:$1, its weakest since it finished at 51.60 on Aug. 24, 2006, after opening at 51.45 from Tuesday's close of 51.34.

"The main driver is the strong retail sales data in the US overnight," Bank of the Philippine Islands lead economist Emilio Neri Jr. told GMA News Online.

According to a report by Reuters, data for July showed the biggest increase in US retail sales in seven months as consumers ramped up discretionary spending and boosted purchases of motor vehicles, suggesting the economy continued to gain momentum.

Neri also took noted other development affecting the foreign exchange market. "With the strong retail data and the fading geopolitical tension, the probability of another interest rate hike in the US resurfaces," he said. — VDS, GMA News