Peso drops to historic low again, at 57.18 to a dollar

By The SUN

 

HK OFWs will now get around ₱7.26 for every HK$1 they send home

The Philippine peso fell to another historic low against the US dollar for the fifth trading day, closing at P57.18 on Thursday.

It began its record decline on Friday, Sept 2, when it fell to ₱56.77; Monday, ₱56.999, Tuesday, ₱57; and Wednesday, ₱57.135.

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Analysts say the peso could weaken further to ₱58 or even ₱60 to the greenback, unless the Bangko Sentral ng Pilipinas does not hike interest rates to match what the US Federal Reserve has been doing.

They expect the BSP to announce a rate increase at its next meeting on Sept. 22.

Other Asian currencies also fell with the strengthening of the US dollar, including the Japanese Yen and the Korean Won.

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Since the HK dollar is pegged to the US currency, it will similarly rise in value compared with the declining currencies, like the Philippine peso. Currently, the rate of exchange is ₱7.26 to HK$1.

While the peso depreciation means higher prices for imports, which now include such staple food as rice, sugar, salt, and even onions, analysts say the upside is that it also reflects the country’s economic recovery.

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Overseas Filipino workers who are mostly paid in US dollars will be getting higher peso value for their earnings, but this is offset by higher prices in the Philippines, which means they should be sending more money home.

PADALA NA!

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