The peso closed to a record low for the second straight trading day on Monday amid heightened risk aversion as investors expect monetary officials to remain hawkish in fighting inflation in the months to come.
This risk aversion also caused the local stock market to drop.
The Philippine Stock Exchange index (PSEi) was down 16.61 points, a 0.25 percent drop to 6,676.04.
The broader All Shares index was down 6.82 points to 3,541.71, a 0.19 percent drop.
Losers edged gainers 101 to 75 with 54 stocks unchanged. Trading turnover reached P4.19 billion.
The peso closed at 56.999 to the dollar, down from 56.77 on Friday. The currency opened at 56.85 and hita high of 56.80 and a low of 57. Trading turnover reached $976.45 million.
The peso hit a record low, while other Asian currencies fell against the greenback on Monday, as geopolitical concerns in Europe and extended COVID curbs in China soured risk sentiment and bolstered the safe haven US dollar, Reuters reported.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC) said the peso touched the 57 level intraday, closing at a new record for the second straight day of its trading.
Over the week, Asia-focused investors will be looking out for key inflation data from China, the Philippines and Taiwan, as well as an interest rate decision from the Malaysian central bank.
Luis Limlingan, managing director at Regina Capital and Development Corp., said shares were sold as a result of some overhang over the US market’s decline over the weekend, with fears that the Fed would stay aggressive in hiking rates to combat inflation.Most actively traded SM Prime Holdings Inc. was down P0.45 to P36.05. Jollibee Foods Corp. was up P3 to P248.80. AbaCore Capital Holdings Inc. was up P0.13 to P2.49. Ayala Land Inc. was down P0.05 to P29. Emperador Inc. was down P0.05 to P20.80. AC Energy Corp. was down P0.36 to P7.28. Solar Philippines Nueva Ecija Corp. was down P0.03 to P1.66. SM Investments Corp. was up P10 to P870. BDO Unibank Inc. was up P2.20 to P130. Bank of the Philippine Islands was up P0.95 to P96.95.
