NEWSFLASH

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PESO RATE HITS P42.65/$1

Manila, Jan. 7, 1998 - The peso hit an all-time low of P42.65 against the dollar yesterday, dropping 4% in the first 90 minutes of trading and forcing a halt to all transactions beyond that level for the rest of the day.

The central bank stayed out of the foreign exchange market, unwilling to risk the country's dwindling dollar reserves.

Bangko Sentral ng Pilipinas governor Gabriel Singson said the peso was not the only currency under attack. All over Asia, currencies lost ground against the dollar, with the Thai baht, Malaysian ringgit and the Indonesian rupiah sinking to new lows.

Volume turnover dropped to $17.5 million from Friday's $95.5 million. Traders said shortage of dollars in the Philippine Dealing System triggered a panic in the market.

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