Peso falls to fresh 12-year low

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Metro Manila (CNN Philippines, August 4) — The peso continues to weaken.

The peso closed at ₱53.53 versus the greenback on Wednesday, the lowest since June 29, 2006, when it closed at ₱53.55.

In an interview with CNN Philippines' Newsroom, BDO Unibank Chief Market Strategist Jonathan Ravelas said the dollar is getting stronger, pushing the peso down.

"We're seeing the dollar getting stronger and towards the end of the month we're expecting the U.S. fed to raise interest rates, continuing to push the peso weaker as a result," Ravelas said.

Ravelas noted that the dollar has continued to strengthen against emerging markets like the Philippines, as it continues to push for the trade war against China.

"We will continue to see initially higher prices as a result, and recently oil prices continue to stay above the $75 per barrel mark," Ravelas added.

Concurring with a report from Dutch-based ING Bank, BDO Unibank expected peso to remain at the P53 dollar month by the end of the year, strengthened by Christmas spending.

"A bulk of remittances can bring us closer to ₱53 by year end," Ravelas said, adding that overseas Filipino workers send most of their remittances during the 'ber' months.