Peso Plummets as Philippines' Trade Deficit Soars

The Philippine peso has been struggling to hold its value against the US dollar, falling by 6.2% this year and becoming the worst-performing currency in Asia.

The main reason for the peso's decline is the country's reliance on service industries, which have seen a widening trade deficit of nearly a third this year due to high oil prices.

According to strategists at JPMorgan Chase and Bank of America, the peso may extend its decline to as low as 65 per dollar by the middle of next year.

The BSP's governor Eli Remolona has said that it's futile to fight the peso's weakness by drawing down foreign reserves, which have dwindled by about 9% to $103 billion from a record high in February.