P/$ Rate Closes At P42.04/$1 - by lovephileo
Peso falls to 42 to the dollar level friday at the Philippine Dealing & Exchange Corporation (PDEX) and after staying within the P40-$1 and P41-$1 range since the onset of the year as the financial market became edgy on inflation and interest rates outlook with the price of crude oil skyrocketing to $120 per barrel.
The central bank believed to have sold dollars heavily the past few days to prevent a depreciation of the peso past 42 per dollar. Other Asian currencies, like the Indian rupee and Korean won were also depreciating against the dollar. Banco de Oro Unibank strategist Jonathan Ravelas expressed that the sharp fall was partly due to the heavy sell-offs on the stock markets, as investors anticipated of further global financial turbulence amid widening losses from the property market downtum in the U.S.
The peso was Asia's best performing currency in 2007, ending the year at 41.28 to the dollar, up 19% from the year earlier level.
Last year, the peso surged by 18.8% to close at 41.28 against the U.S dollar, becoming Asia's best performing currency. It further hit an eight-year high of 40.25 in end-February but has lost steam since then.