Peso down at ₱53.23:$1; stock market in the red

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Metro Manila (CNN Philippines, June 13) — The peso ended weaker on Wednesday at ₱53.23 to $1.

It reached an intraday low of P53.26.

The peso breached the P53 mark after closing at ₱52.95:$1 on Monday, down by ₱0.28. Markets were closed on Tuesday for the country's 120th Independence Day.

Meanwhile, the stock market ended in the red today, posting a 2.17 percent dip with all sub-indices down.

The markets are on edge over a possible interest rate hike in the United States, said BDO Unionbank chief market strategist Jonathan Ravelas.

On the local front, the two-year low trade deficit in April also factored heavily in today's trade.

"April imports rose by 22.20 percent year-on-year to $8.73 billion, while exports fell 8.50 percent year-on-year to $5," Ravelas said in a text message.

Ravelas said this brought the trade deficit at $12.20 billion year-to-date. A trade deficit happens when a country imports more than it exports.

The Cabinet-level Development Budget Coordinating Committee, in its latest macroeconomic assumptions report dated April 13, said it expected the exchange rate to fall within the ₱50-₱53 to $1 range in 2018.

It added the economy would stabilize in 2019 after fluctuations in assumptions such as the exchange rate breaching the upper limit of ₱52 to $1 and inflation breaching the 2-4 percent target of the Bangko Sentral ng Pilipinas (BSP). Inflation in May reached a new five-year low of 4.6 percent.

The DBCC groups the Department of Budget and Management, Department of Finance, National Economic and Development Authority, Office of the President and BSP.

The Monetary Board, the BSP's policy making body, will be having its next meeting one day earlier than originally scheduled to discuss possible changes in monetary policy.

The next Monetary Board meeting will be on June 20.

"The announcement of the monetary policy decision of the MB shall be made on the same day," the BSP said in a statement.