Manila Forex Hit By Political Uncertainty

The Dollar and other foreign currencies rose sharply yesterday (June 9, 2005) against the Philippine Peso as rumors of plots to oust the president persistently spread across the country. Allegations against Macapagal’s administration have been hurting the economy for the past three days resulting to a 2.82% decrease in shares during the stock market’s closing last Thursday.

Efforts to implicate Arroyo’s family in illegal lotteries alongside rumored protests for alleged electoral frauds during her last presidential campaign have caused the military to be on high alert. These have caused investors to back out from a market that has become nervous of the political developments.

With composite index to lose 55.04 points in the morning trade, the Dollar was traded to a lowered Peso value of P54.92 yesterday.

But matters have gone from bad to worst today as trading closed at P55.20 to a Dollar, its lowest in three months as anti-government rallies have started to stage protests. With trading and businesses closed on Monday for the Independence Day holiday, the economy hangs in waiting for the next turn it will take.

Source: Asian Stock Close Mixed Ahead Of Greenspan’s Testimony, menafn.com and Peso At New 3-Month Low; Central Bank Seen In The Market, inq7.net