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Thursday, March 13, 2003
War concerns force peso past 55 to dollar
MANILA—The peso fell past the key 55 level to the US dollar in a fresh 25-month low as concerns over possible war in Iraq and the Korean crises added to prevailing domestic security worries, dealers said.
In early trading in Manila, the peso plunged to 55.05 to the dollar from 54.90 on Tuesday, within striking distance of its historic low of 55.25.
The currency dived to the all-time low on Jan. 18, 2001 at the height of a military-led popular uprising that installed President Arroyo after the ouster of corruption-tainted Joseph Estrada.
At the end of the trading session, the peso was found to have traded at a day low of 55.10, according to the Bankers Association of the Philippines. (See rates on 25.)
“The market is getting more worried as even before a war breaks out in the Middle East, we’re already seeing an increasing number of terror attacks here at home,” a dealer said.
A blast at the airport of the southern Philippine city of Davao last week killed 21 people and injured more than 150 others. There has also been intense fighting between Muslim separatist rebels and government troops in the troubled south.
“The uncertainties in the Middle East will definitely bring more volatility to the currency market in the coming days,” the dealer said.
Central bank
Other dealers said they saw the central bank supporting the peso at 54.98 but that it could not prevent the currency from breaching the sensitive 55 level.
Bangko Sentral ng Pilipinas Deputy Gov. Amando Tetangco said the peso weakness was temporary and due to war jitters over Iraq. (AFP)/CTL
(March 13, 2003 issue)
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