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Peso hits new record low at P52:$1 after bombings
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Posted on Jan 03 2001
The Philippine peso hit a new record low of P52 to the dollar yesterday on security concerns following a wave of deadly bombings that hit Manila, brokers said.
The peso opened at 50.75 Tuesday and by mid-morning had slid to P52, dealers said. It closed at P50.01 to the greenback on Friday, the last trading day for 2000.
The peso’s previous record low was P51.95, posted on October 31 during the height of a political crisis resulting from allegations of corruption against President Estrada.
Estrada has been impeached by the House of Representatives on charges of bribery, graft and corruption, betrayal of public trust and culpable violation of the constitution. He is on trial in the Senate and could be ousted if convicted.
The opposition has claimed the bomb attacks on Saturday which killed 14 people and wounded nearly 100 others could be part of a strategy by the embattled president to allow him to declare a state of emergency and scuttle the unprecedented trial.
Estrada’s camp has emphatically rejected the claim, and security officials have blamed Muslim insurgents and communist guerrillas for the attacks.
“For as long as people feel there are continued threats of bombs, they will keep panicking,” one foreign bank trader said, adding the peso was likely to remain volatile and trade in a range of P50.50 to P52.50 yesterday.
Other traders said the peso would likely recover later when Estrada’s trial resumes. (Agence France Presse)
