Dubai: The Philippine peso fell to its lowest level against the UAE dirham this year, just a few days after the country’s new central bank governor assumed post.
The Asian currency traded at 14.41 against the UAE dirham on Tuesday, the lowest since late December 2018. The peso also dropped to Dh52.70 against the US dollar, the only loser among emerging-market currencies, according to Bloomberg.
This was the second time the currency showed significant weakness since central bank governor Benjamin Diokno assumed his post.
The former budget secretary took over the reigns of the central bank on March 5. He is seen to favour lower interest rates and was earlier quoted as saying that a weak peso would not be detrimental to the economy.
After his appointment was revealed, the peso fell sharply. Diokno later said in a television interview on Tuesday that he didn’t find the peso “too strong.” “It is within our forecast band of 52 to 55,” he told ANC.
The peso has been strengthening against the US dollar this year, after hitting record lows in 2018, hitting 14.77 against the dirham in September.
Filipino expatriates in the UAE are among the biggest money senders, just behind Indian and Pakistani migrant workers.
Between October 2018 and December 2018, Filipinos moved Dh2.9 billion to their home country, accounting for 7.2 per cent of the total money flows from the UAE.