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By Johnny Litton | September 8, 2013 - 12:00am
By Johnny Litton | September 9, 2012 - 12:00am
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Peso depreciation raises inflation risks and strengthens the case for higher-for-longer rates, favoring dollar earners, exporters and banks.
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Whether it is standing in gridlocked metropolitan traffic, watching grocery bills climb alongside daily electricity rates, enduring sudden power outages, searching underfunded public hospitals for basic medicines or wading through flooded streets after a storm – everyday life in the Philippines is defined by the recurring collapse of public accountability.
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The peso breached the 63-to-a-dollar level yesterday, closing at a fresh record low as US inflation heated up, reinforcing expectations of prolonged high interest rates and boosting the dollar against emerging-market currencies. Data from the Bankers Association of the Philippines showed the peso closed at 63.06 to $1, weakening by 19 centavos from Wednesday’s 62.87 finish. It surpassed the previous record closing low of 62.90 set on Oct. 8.
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The Philippines has one of the lowest penetration rates for fiber-to-the-home services in Asia-Pacific, as Filipinos prefer mobile data due to its cheaper pricing.
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More than eight million customers of Manila Electric Co. should brace for higher power rates this month following an increase in generation charges.
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