The Philippine peso hit a near 17-month low against the US dollar on Tuesday, reaching P57:$1, marking its weakest performance since November 2022.
This depreciation is attributed to geopolitical tensions, particularly in the Middle East, following Iran’s recent drone and missile attacks on Israel.
The US dollar also strengthened due to better-than-expected retail sales data and hawkish signals from Federal Reserve officials.
The peso’s decline coincided with a significant drop in the local stock market, with the Philippine Stock Exchange Index (PSEi) hitting fresh four-month lows, falling by 2.40% to 6,404.97.
Declining issues outnumbered advancers, with worries over escalating tensions in the Middle East contributing to the market sell-off.
Overall, the PSEi has erased most of its gains for the year, down 0.7% year-to-date, amid concerns over geopolitical risks and rising yields.
Source: PhilNews24 | April 17, 2024
