However, Bangko Sentral ng Pilipinas Deputy Governor for research and treasury Amando Tetangco Jr. said the weakness of the peso against the dollar will be short-lived, as he cited the dollar inflows from overseas Filipino workers (OFWs) in the fourth quarter.
The dollar remittances from OFWs could reach about $8 billion compared to last year’s $6 billion, Finance Secretary Jose Isidro N. Camacho, said in an earlier interview.
The peso actually, opened slightly higher yesterday at P52.67 from the previous day’s close of P52.68.
But as reports of a larger-than-revised budget deficit outlook of P183 billion for 2002 swept through the financial market, the peso slid to its intra-day low of 52.755.
The hiked demand from corporates and the similar weakening of the currencies in the region also dampened the possibility of a sustained recovery.
Except for the yen, other regional currencies such as the Korean won, Indonesian rupiah and Chinese renminbe likewise went south, depreciating by 0.16 percent, 0.09 percent and 0.06 percent, respectively.
The peso was the worst performer among the regional currencies yesterday, declining in value by as much as 0.72 percent.
But, with the expected heightened inflow of dollar remittances from OFWs as the holiday season draws near, Tetangco said the peso will, definitely recover some of its lost ground.
"It is temporary. We’re now going to the fourth quarter where you normally see the increase in the dollar inflows from OFWs. That will be positive for the peso," Tetangco said.