Peso plumbs near 13-year low on rate hike, trade war fears
The peso weakened to P54.31 to the dollar, down eight centavos from Monday on speculations the Bangko Sentral ng Pilipinas may raise interest rates anew.
The US Federal Reserve is also expected to hike interest rates on Sept. 27.
Analysts said Donald Trump’s escalating trade war with China will have far reaching implications on other countries due to global value chains.
The BSP is widely expected to raise key interest rates by another 50 basis points on Thursday in a bid to rein in inflation.
The benchmark Philippin stock index also plunged by 101 points oe 1.4 percent to 7,332 Tuesday on lingering concerns on inflation and the country’s widening budget deficit.