Peso hits new 5-year low on US, Japan data

The peso touched a new five-year low on Monday, after positive US data bolstered the dollar while the Japanese economic slowdown weighed on regional currencies.

 

The Philippine currency weakened by 11 centavos to 46.325:$1 from the previous close of 46.215. The greenback kept the peso subdued throughout the session, with the local currency posting an intraday best of 46.26.

 

"The US dollar appreciated further from last Friday’s positive data. The producer price index was reported to have increased by 0.2 percent in July. A separate report showed that industrial production in July was better than forecast," MetisEtrade Inc. analyst Cherica Vicente said.

 

The figures boosted expectations the US Federal Reserve would increase interest rates for the first time in almost a decade as early as September, according to a report by Agence France-Presse. 

 

The contraction of the Japanese gross domestic product by 0.2 percent in the second quarter further weakened the peso, since Japan is one of the Philippines' major trading partners, Vicente said. – Keith Richard Mariano/VS, GMA News