Philippine peso hits new all-time low at P59.44 to US dollar

The Philippine peso went down to a new all-time low on Wednesday, dragged by lower target spending on infrastructure while the greenback was buoyed by market expectations of a pause in policy easing by the US Federal Reserve.

The local currency closed at P59.44:$1, depreciating by 9.9 centavos from Tuesday’s finish of P59.341:$1, and breaking the previous record of P59.355:$1 on January 7.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed Wednesday’s depreciation to the reduction of the target spending on infrastructure to 4.3% of the gross domestic product from 5.1% previously, citing need for caution amid the corruption concerns.

He also cited the expected Fed rate pause despite inflation hitting the slowest since March 2021, which drove the dollar higher against major global currencies.

Ricafort noted, however, that these were partly offset by the continued net foreign buying in the local equities market, hitting its ninth straight day at $4.9 million on Wednesday, after $8.5 million the previous trading day.

The local stock barometer PSEi fell by 0.29% to 6,389.81, while the broader All Shares declined by 0.06% to 3,635.94.

More than 1.86 billion shares, valued at P6.92 billion, changed hands.Decliners led advancers, 97 to 95, while 71 issues were unchanged. —NB/AOL, GMA Integrated News