Peso closes above ₱55 vs. dollar after over 16 years

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Metro Manila (CNN Philippines, June 29) — The Philippine peso lost more ground versus the dollar as it breached the ₱55-level on Wednesday, its weakest performance in more than 16 years.

Data from the Bankers Association of the Philippines showed the local currency's intraday high was recorded at ₱55.1 before ending at ₱55.06.

According to RCBC chief economist Michael Ricafort, today's movement was the weakest since Oct. 27, 2005 when the peso closed at ₱55.08.

Ricafort said the depreciation of the peso was due to the movement in the bellwether Philippine Stock Exchange index.

"The latest peso exchange rate movements were partly due to the healthy downward correction in the PSEi today, after rising for three straight trading days, considered a healthy correction," he said.

"The latest currency movements also came after the US dollar corrected higher vs. major global currencies after continued hawkish signals from some Fed officials," Ricafort added.

Security Bank chief economist Dan Roces, meanwhile, attributed this to the "month-end repositioning" and the central bank's earlier statement on "let[ting] peso seek its own level."

READ: Bangko Sentral: 'Strong dollar phenomenon' behind weaker peso, not local developments