Peso falls to new 12-year low

THE peso opened the week at a new 12-year low against the dollar, weighed down by geopolitical developments and worries over a new US interest rate increase this week.

The currency opened 26 centavos down at P52.80 to the dollar, weaker than the P52.74:$1 finish recorded on July 19, 2006.

The local unit further weakened to P52.93:$1 in morning trade.

“It is because of safe-haven buying following the recent G7 summit and ahead of the June 12 meeting between the US and North Korea,” Land Bank of the Philippines market economist Guian Angelo Dumalagan said.

“The dollar also received some boost from expectations of another rate hike from the US Federal Reserve this week,” he added. MAYVELIN U. CARABALLO

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