The Philippine peso weakened further against the US dollar on Wednesday, trading closer to an 11-year low as the country’s negative external position dampened demand for the local currency. “Most likely this news: PH June posts balance of payments deficit of $569 million,” said BDO Unibank market strategist Jonathan Ravelas. Bangko Sentral ng Pilipinas data showed the balance of payments hit a deficit of $569 million in June, wider than the $59 million deficit in May but reversing the $418 million surplus in June 2016. For the first half of 2017, the payments position swung to a deficit of $706 million, a surplus of $634 million a year earlier. The peso first touched the P50:$1 level on November 24 last year as bets on interest rate hikes in the US, which actually happened in December, favored the dollar.

Source: Manila Times July 19, 2017 17:03 UTC