New peso low of Ps55.75 following controversial senate vote

The Peso hits new lows as an overnight rally of the anti-Erap groups followed a controversial Philippine Senate vote.
The overnight indignation rally of the anti-Erap groups at the historic EDSA Shrine following the late night vote of the Philippine Senate to suppress evidence in the impeachment trial of President Estrada sent the Philippine peso to another discouraging record low.

The peso has been breaching intraday records lately and almost every day the traders are expecting some record breaking drop each time the prosecution panel suffers a technical defeat at the impeachment hearing.

The peso opened with a stunning weakness at Ps55.500 compared to the previous day’s closing of Ps52.780 to the US dollar. This unprecedented overnight freefall of Ps2.72 reflected the panicking investors and traders following the controversial senate vote the previous night.

The peso reached its maximum weakness when it hit a record low of Ps55.750 before recovering some strength to close at Ps54.625 still weaker than the previous day’s close of Ps52.780. The volume was only $70 million compared to yesterday’s volume of $158 million.

Suppression of evidence

Late Tuesday night, the Philippine Senate sitting as an impeachment court voted 11-10 against opening what is called as the “second envelope” containing banking records allegedly owned by President Estrada and his mistresses.

The anti-Erap groups believe this was an unreasonable suppression of evidence. They also interpreted the senate vote as indicative of the final judgment.