Peso on brink of record-low 63:$1 level
The peso sank to a fresh record low against the dollar yesterday as expectations of an interest rate hike in the United States fueled demand for the greenback, bringing the local currency closer to the 63-per-dollar level.
Manila, Philippines — The Philippine peso plummeted to a new record low against the US dollar yesterday, hovering just 14 centavos away from the 63-to-1 mark. Traders attribute the decline to expectations of a potential interest rate hike by the US Federal Reserve, which has increased demand for the greenback. The peso closed at 62.86 to $1, down 18 centavos from its previous record low of 62.68 set on Friday.
Trading volume dipped 14.9 percent to $969.22 million, compared to $1.14 billion on Friday. A trader noted that the latest US inflation data solidified the belief of a Fed rate increase, making dollar investments more attractive. Oil prices, hovering above $100 per barrel due to Middle East tensions, have also contributed to the peso's weakness, as the country is a significant oil importer.
The Bangko Sentral ng Pilipinas (BSP) is expected to monitor the currency closely as it nears the 63-to-1 level.
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.
