Philippine peso hits four-month lows vs US dollar ahead of Estrada verdict |
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Tue, 11 Sep 2007 08:55
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MANILA (Thomson Financial) - The Philippine peso fell Tuesday to its weakest level in nearly four months against the US dollar as market players awaited anxiously the court's verdict in the six-year trial of former president Joseph Estrada for corruption.Growing expectations that the Federal Reserve will cut its federal funds rate at its Sept 18 meeting amid fears the US economy may be heading into a recession has also buoyed the dollar.The peso hit a low of 47.08 to the dollar in afternoon trading, its weakest level since May 15.The Philippine military went on high alert on Tuesday, a day before the verdict is handed down, saying pro-Estrada forces may become unruly if the former movie star-turned-president is found guilty on charges of corruption.Despite his ouster through a military-backed popular revolt in 2001, Estrada still enjoys the support of many poor Filipinos, while his successor Gloria Arroyo suffers from low popularity ratings.An acquittal could also be damaging to Arroyo, who has been accused of cheating her way to victory in the 2004 presidential elections and has survived two military coups.Estrada said he is prepared to spend the rest of his life in jail if found guilty, but continued to deny the allegations he stole over 80 million US dollars mainly through tax kickbacks and payoffs from illegal gambling operators.Arroyo has also denied she stole the vote in the 2004 polls.'A peaceful outcome should be peso positive, but any violence may see the peso weaker,' a dealer with Metropolitan Bank & Trust Co said.enrico.delacruz@thomson.comed/jgCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Philippine peso resumes slide, hits 3-month lows vs dollar on credit worries 