By Anna Leah Gonzales | Philippine News Agency
The peso closed at an all-time low of 60.10 against the U.S. dollar on Thursday after the U.S. Federal Reserve kept interest rates steady, while the local stock barometer snapped its two-day winning streak.
“The Philippine market ended in the red following strong selling pressure early in the session, driven by the peso’s drop to a record low against the US dollar after the Fed kept interest rates unchanged,” Regina Capital Development Corporation head of sales Luis Limlingan said.
Limlingan said the ongoing uncertainty in the Middle East, which continues to impact oil prices, further weighed on market sentiment.
The peso closed at 60.1, down from the previous day’s 59.52 finish.
“[This was] a reaction to retaliation by Iran. Knee jerk reaction,” Reyes Tacandong & Co. senior adviser Jonathan Ravelas said in a Viber message.
Iran recently hit Qatar’s energy hub.
“If this escalates, we could see it [peso] staying above 60,” Ravelas said.
The local currency opened at 59.9 from its 59.68 start on Wednesday.
It ranged between 59.9 and 60.4, bringing the day’s average to 60.12.
Volume of trade rose to US$2.43 billion from the previous day’s US$1.77 billion.
Meanwhile, the Philippine Stock Exchange index (PSEi) fell by 0.56% to 6,018.62 while the All Shares index also declined by 0.56% to 3,344.87.
Except for Industrial, which rose by 0.14%, all the sectoral gauges closed in the negative territory.
Mining and Oil recorded the biggest decline of 6.70%.
Volume of trade reached 1.87 billion.
Decliners led advancers at 133 to 61, while 55 shares were unchanged.
