Peso drops to 58.27 a dollar as BoP incurs wider deficit

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Peso drops to 58.27 a dollar as BoP incurs wider deficit
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The Philippine peso fell to a new 18-month low, closing at 58.27 against the US dollar Tuesday amid strong investor appetite for the greenback.

“The dollar continued to strengthen as the Federal Reserve signaled delay in cutting interest rates,” Remolona said. The general strength of the dollar is also in line with rising commodity prices. Copper, a key gauge of the state of the economy owing to its widespread use, hit a record above $11,400 Monday, while gold was also hanging just short of its own peak touched on the same day. Silver was around an 11-year high.

The April figure brought the four-month BOP level to a $401-million deficit, a reversal from the $3.3-billion surplus recorded a year earlier.

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