Peso sinks to new low against dollar in boost for expats

While remittances sustain consumption, experts say they don't drive growth

- BY JAY HILOTIN Senior Assistant Editor

The Philippine peso weakened to a record-low intraday level of 59.20 pesos against the US dollar yesterday, amid growing market concerns over the country's economic outlook and the government's ongoing crackdown on irregularities in infrastructure spending.

Data from the Bankers Association of the Philippines showed that the peso’s weighted average stood at 59.098 pesos to the dollar as of last morning.

The intraday low of 59.20 pesos marked a new all-time record for the local currency.

The peso had already shown weakness at the start of the week, closing at 58.90 pesos on Monday from 58.625 on Friday.

Fundamentals stills strong

According to the BSP, the recent depreciation reflects market worries about a potential slowdown in economic growth — partly driven by the infrastructure spending controversy — and expectations of further monetary policy easing by the central bank.