Peso opens at P62.05 vs dollar after record-low close
The currency extended its slide after setting a record closing low Thursday.
The Philippine peso opened at P62.05 against the US dollar on Friday, August 28, 2023, after it had closed at a record low of P61.888 to $1 on Thursday, August 27, according to the Bankers Association of the Philippines. The peso's previous record low of P61.847 was set on July 24, 2023. The decline in the peso's value comes as investors consider the domestic inflation risks and anticipate further signals on the trajectory of US interest rates.
The weakening peso is expected to continue as investors focus on upcoming US monetary policy signals, with one trader predicting the currency to fluctuate between P61.75 and P62 per dollar in the near term. The depreciation of the peso has also been influenced by the Central Bank of the Philippines' revised inflation outlook for 2027, which accounts for potential risks arising from the impending El Niño phenomenon and anticipated wage increases.
A weaker peso can result in higher costs for imported commodities, including oil, which may exacerbate inflationary pressures in the country. Conversely, a stronger US dollar could benefit those in the Philippines who receive remittances from overseas Filipino workers, as they would receive more pesos for each dollar transferred.
However, higher prices resulting from a weakened peso could also diminish the purchasing power of these remittances.
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.
