Peso could sink further to P65-68 vs. US dollar —Salceda

Albay Representative Joey Salceda said the value of the Philippine peso could further sink in the coming days to P65-68 as against the United States dollar. 

According to Sandra Aguinaldo's report on "State of the Nation," record lows were achieved in four straight days in the peso exchange rate against the dollar, which closed today at 58.50 per dollar.

"Frankly, there's not much we can do. To return to stable core inflation, the U.S. needs to achieve 5% disinflation that it achieved in the early 1980's, and that took 6,500 basis points in interest rate hikes... So, hang on. This is still bound to be quite a ride," Salceda, an economist, said on Friday.

The Bangko Sentral ng Pilipinas (BSP) assured that the peso is still stable.

"The Philippine currency is actually in middle of the pack. If one takes a global view, the currency is actually quite stable," BSP Governor Felipe Medalla said during a news conference with the country's economic managers in New York.

According to data by investment.com analyzed by GMA News research, it appeared that the currency of all countries in the Association of Southeast Asian Nations (ASEAN) weakened against the dollar.

Meanwhile, some Overseas Filipino Workers (OFWs) have taken advantage of the situation and started exchanging their dollars.

According to the report, one hundred dollars is now equal to P5,850 which used to be P5,100 when the value was just 51 pesos to a dollar.

Some are not happy because even if the exchange rate increases, so will the price increase.

"Okay naman po sa side namin na OFW na mataas per paguwi namin dito parang ganun din naman yung value.  Kung tumaas yung palitan tapos tataas din ang presyo, parang equal lang din," seafarer, Paul Hector Merelos, said.

According to economists, when the dollar is high, importers feel the pressure because they need to pay higher for the costs of goods. —Sherylin Untalan/LDF, GMA News