MANILA, Oct. 28 (Xinhua) - The Philippine peso slid to 59.20 against the U.S. dollar, its lowest intraday level in history, on Tuesday amid concerns over the country's growth prospects due to the government's crackdown on infrastructure spending.
In a statement Tuesday, the Bangko Sentral ng Pilipinas (BSP) said it will continue to allow the exchange rate to be determined by market forces.
As of Tuesday morning, the peso's weighted average stood at 59.098 per greenback, according to data from the Bankers Association of the Philippines. The intra-day bottom of 59.20 set a new record low for the local currency.
On Monday, the peso depreciated to 58.90 from Friday's 58.625 finish against the U.S. dollar.
"We continue to maintain robust reserves. When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility," the BSP said.
It added that the recent peso depreciation may reflect market concerns over a potential moderation in economic growth, driven in part by the infrastructure spending controversy, as well as expectations of additional BSP monetary policy easing.
"The peso continues to be supported by resilient remittance inflows, still relatively fast economic growth, low inflation, and ongoing structural reforms," the BSP added.
The BSP said foreign exchange inflows from business process outsourcing, tourism, and overseas Filipino workers continue to buffer external shocks.
