Philippine peso at 7-year low against the dollar

Experts believe that remittances from UAE will rise significantly

The Philippine peso tumbled to its lowest level in seven years as outflows from equity markets continued for twenty third straight day.

The peso tumbled to 48.245 pesos to the US dollar, representing a 4 per cent decline in just one month, and making it the worst performance of any Asian currency.

The peso is now at its lowest level against the dollar since September 2009.

The Philippine Stock Exchange index, which witnessed outflows for a 23rd straight session, dropped extended losses, falling nearly 1 per cent, after rallying 2.3 per cent last week, the most in more than two months.

“The uncertainty about the US Fed’s next policy action may well be the cause of the weakening peso as in the case with other regional currencies,” said Sudhesh Giriyan, chief operating officer, Xpress Money.

Additionally, other external factors like economic developments in China, the European Union and Japan and expectations of a lower current account surplus are intensifying the peso’s weakness, Giriyan added.

Positive impact

This also meant weakness in the peso against the dirham. As of September 26, the peso has fallen to 13.16 against the dirham, which is the lowest it has ever been in the last seven years

“It will have a positive impact on the remittances to Philippines,” Y. Sudhir Kumar Shetty, president of the UAE Exchange, said.