Peso weakens further, returns to P50:$1 level

The Philippine peso continued is losing streak for the eight straight day on Friday, returning to P50-per-dollar level.

The local currency closed at P50.08:$1 from Thursday’s finish at P49.875:$1.

This is the weakest for the peso in more than a year when it closed at P50.19:$1 on June 23, 2020.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the weaker peso versus dollar exchange rate was due to a stronger greenback worldwide amid a hawkish US Federal Reserve stance.

“Peso also weaker after the latest trade deficit/net imports data that is the still among the widest since the pandemic started or since January 2020,” Ricafort said.

The country’s trade in goods deficit widened by 109.7% in May to $2.755 billion from $1.314 billion in the same month in 2020 as imports continue to outgrow exports during the period.

Since the start of 2021, the peso depreciated by a total of P2.057 against the US dollar from P48.023:$1 as of end-2020.—AOL, GMA News