(Bloomberg) -- The Philippine peso dropped to the lowest level in two years, as the escalating war in Ukraine boosted the dollar.
The peso fell as much as 0.5% to 51.75 per dollar, the weakest since March 2020. The currency has declined more than 1% this year, making it one of the worst performers in Asia.
Emerging-market currencies weakened on Thursday amid reports that Russian troops began shelling a nuclear power plant in Ukraine. Federal Reserve Chair Jerome Powell on Thursday also reaffirmed the U.S. central bank is on track to raise interest rates this month, a move which could spur capital outflows from emerging markets.
There's no need to be concerned over the peso's depreciation because it is based on market supply and demand, Philippine central bank Governor Benjamin Diokno said in February.
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