Peso sinks to record low 61.888 vs dollar
The peso sank to a fresh record closing low yesterday as investors weighed rising domestic inflation risks and remained cautious ahead of new signals on the outlook for US interest rates.
The Philippine peso hit a record low of 61.888 against the US dollar, according to data from the Bankers Association of the Philippines. This marked a significant 23.80 centavos decline from Wednesday's close at 61.650. The peso's depreciation came as investors grew concerned over rising domestic inflation risks and remained cautious ahead of upcoming US interest rate signals.
The Bank of the Philippines (BSP) had recently raised its inflation outlook for 2027, citing potential threats from the impending El Niño phenomenon and wage hikes. The slump may continue as traders anticipate remarks from US Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium, and anticipate the peso may trade between 61.75 and 62 to the dollar in the near future.
The peso's continuing weakness highlights the ongoing concern over imported inflation risks, with BSP Governor Eli Remolona Jr. noting that a sharper depreciation would have a more pronounced impact on consumer prices.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
