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Thursday, January 29, 2004
Peso falls to new all-time low after arrests (10:30 a.m.)
MANILA -- The peso plunged to a fresh all-time low at P56.12 to the dollar Thursday after the arrests of six military officers over a plot to destabilise the government. Local shares also opened weaker Thursday.
The peso opened at the Philippine Dealing System at P55.95, already weaker than Wednesday's close of P55.90. It averaged at P56.056 to the dollar, but hit a low of P56.12.
The Philippine Stock Exchange composite index meanwhile shed 11.94 points in opening trade.
Central bank deputy governor Amando Tetangco said the destabilization plot was partly to blame for the weak peso.
"The peso is weaker because of a number of things. First is the strong US dollar because of the Fed saying they are prepared to raise rates," Tetangco said.
"Second is the corporate month-end requirements. Third is the rumored destabilization plot against the government, which is part of the overall political scenario."
Defense Secretary Eduardo Ermita said the six officers were part of a group working to destabilize the Arroyo government ahead of the May elections.
They are now in custody and are being interrogated, Ermita said, saying the group was liable for inciting to rebellion.
The group called for Ermita's resignation in a television broadcast late on Wednesday and issued a statement denouncing "in the strongest terms possible the shameful and dangerous politicization" of the armed forces." AFP |
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