Philippine currency peso drops to lowest level in more than 16 years

The philippine currency Peso fell to the lowest level in more than 16 years on Wednesday (June 22). This is being seen as the Philippine central bank’s preference for gradual reduction of interest-rate hike.

On Wednesday, peso dropped to 54.60 per dollar. This was a drop by 0.6 per cent. This was the peso’s weakest level since November 2005. It is predicted to fall for the fifth straight mont. This is the longest streak of losses since 2015. 

Felipe Medalla, the Philippine economist and incoming governor of the Philippines’ central bank on Monday said that his aim was to continue raising rates at gradual pace beyond August. Monetary authorities from Indian to the US have embarked on larger hikes in interest rates to curb inflation.

Bloomberg said that eight of the 25 economists surveyed by it were already calling for an increase of 50 basis point at Thursday’s meeting. The rest, as quoted by Bloomberg preferred 25 basis points hike. 

Felipe Medalla, the economist who sits on the board of Bangko Sentral ng Pilipinas is due to take over as governor on July 1. He had signalled 25 basis-point increases for the meeting that took place this week and the one in August.