Peso slips to 8-month low amid political turmoil

Manila, Philippines – The peso slipped to an eight-month low against the dollar on Monday as investors fretted over snap election talks in congressional halls and a shakeup at the Senate blue ribbon committee.

The local currency failed to get help from a lackluster greenback dulled by the US government shutdown.

The dollar-peso exchange rate settled at P58.35, the local unit’s worst finish since Feb. 3 this year when it closed at P58.66 against the US currency, according to spot currency market data.

“The weakness of the dollar did not provide support,” one FX analyst said.

“Trades were influenced by market jitters over the political landscape and the next BSP rate decision,” another trader said.

A proposal by Sen. Alan Peter Cayetano to hold a snap election amid public outcry over graft in public works and infrastructure projects hogged the headlines on Monday, while Senate President Pro Tempore Ping Lacson officially resigned as chairman of the blue ribbon committee, the panel that handles the corruption probe.

Caution ruled ahead of a string of data expected this week - September inflation and the central bank rate decision that hinges on it.

Trading last week has been volatile, and Monday's results show the exchange rate's P57-per-dollar comeback was short-lived.