Manila, Philippines – Philippine peso continued to weaken on Wednesday, breaching the P53.09:$1 level in morning trade.
The local currency opened at P53 to the dollar, five centavos weaker than the closing rate of P52.95:$1 on Monday.
Analysts said earlier this week that geopolitical developments and worries over an expected US interest rate increase announcement were weighing down the local currency.
Philippine stocks succumbed to profit-taking in early trading Wednesday ahead of the Federal Open Market Committee meeting scheduled today where an increase in interest rates is expected to be announced.
The bellwether Philippine Stock Exchange index (PSEi) was down 188.74 points or 2.43 percent to pause at 7,582.56, while the wider All Shares was down 87.12 points or 1.85 percent at 4,617.42.
All sectoral results were in the red, led by holding firms, down 3.14 percent.
“Several factors are leading to the market decline this morning. The net foreign selling, anticipation of the Fed fund rate hike later, and the possibility that a statement later will implement four hikes over this year,” Regina Capital Development Corp. Managing Director Luis Limlingan said.