Philippine peso falls to ₱63.7 per US dollar
The currency lost 45 centavos as a stronger dollar followed US inflation data that exceeded economists’ forecasts.
The Philippine peso ended trading on November 12 at ₱63.7 per US$1, weakening by 45 centavos from ₱63.25. It was the currency’s second consecutive trading-day decline.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., linked the fall to the US dollar’s gains against other major currencies. He said stronger-than-expected US inflation figures had increased expectations of Federal Reserve interest rate rises in the coming months.
US Bureau of Labor Statistics data showed a 0.4 per cent increase in consumer prices, above the 0.3 per cent economists had forecast.
Ricafort nevertheless expected support for the peso from a seasonal rise in remittances from overseas Filipino workers, export receipts and other dollar sales. He said these funds would be exchanged for pesos during the fourth quarter to meet spending associated with the Christmas holidays.
