The peso fell to a fresh record low while stocks plunged by nearly 5 percent on Monday, March 9, as the oil shock caused by the worsening crisis in the Middle East rattled markets.
Analysts warned that the currency could weaken to as much as 61 to the dollar while stocks are poised to fall further if tensions in the Middle East persist and the Strait of Hormuz remains closed.
On Monday, the local currency ended trading at 59.5 per dollar, 50 centavos weaker than its previous close. The finish marked a new record low for the peso, surpassing the earlier low of 59.46 set on Jan. 15.
The peso also sank to an intraday low of 59.71, breaching the prior intraday record of 59.50. Trading volume was heavy, rising to $2.6 billion from $1.8 billion in the previous session.
A trader attributed the weakness to surging oil prices amid the prolonged conflict in Iran and parts of the Middle East.
At home, diesel prices are expected to surge by as much as P24.25 per liter this week, though some oil companies have agreed to stagger the increases.
As for stocks, the benchmark Philippine Stock Exchange Index (PSEi) fell 4.97 percent or 314.19 points to close at 6,006.22.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the PSEi may slide further if it repeatedly falls below the 6,000 mark and struggles to sustain gains above that level. (Emmanuel John B. Abris, Ian Nicolas P. Cigaral © Philippine Daily Inquirer)
