Falling Philippine peso sets off alarms

It is down 6.4% against the US$ this year, but country's economic chiefs say situation manageable

Philippine central bank governor Nestor Espenilla giving an interview in Tokyo yesterday. He has said the peso's movements have been market-driven, and the currency continues to draw support from the country's healthy macroeconomic fundamentals. But
Philippine central bank governor Nestor Espenilla giving an interview in Tokyo yesterday. He has said the peso's movements have been market-driven, and the currency continues to draw support from the country's healthy macroeconomic fundamentals. But he added that the central bank is ready to act to prevent excessive peso volatility. PHOTO: BLOOMBERG
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The Philippine peso is in freefall against the greenback, setting off alarm bells over the strength of the economy amid a growing trade deficit and rising prices.

The currency hit a 12-year low of 53.23 to the United States dollar last Wednesday, and has since slid further to around 53.48. It has lost 6.4 per cent of its value against the greenback this year, making it Asia's worst-performing currency.

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A version of this article appeared in the print edition of The Straits Times on June 20, 2018, with the headline Falling Philippine peso sets off alarms. Subscribe