Peso plumbs new depths, closes at 62.90:$1
The peso sank to a new record low against the dollar yesterday as elevated US interest rates supported the greenback and oil prices above $100 per barrel raised concerns over the Philippines’ import bill.
Manila, Philippines — The Philippine peso hit a new record low against the dollar on Friday, closing at 62.90 to $1, according to data from the Bankers Association of the Philippines. The currency experienced a 15 centavo decrease from Wednesday's finish of 62.75, marking the lowest closing level since September 14. The peso opened the session at 62.65, its strongest level for the day, before falling to its weakest point of the trading session.
Trading volume surged by 20 percent, reaching $1.45 billion compared to $1.21 billion the previous day. UnionBank chief economist Ruben Carlo Asuncion cited persistent dollar strength and rising external price pressures as primary factors behind the peso's decline. He highlighted the Federal Reserve's higher-for-longer policy stance and elevated Treasury yields, which continue to support the greenback.
Furthermore, oil prices surpassing $100 per barrel have heightened concerns over inflation and the Philippines' import bill.
Asuncion noted that the unexpected acceleration in Philippine inflation to 7.2 percent in September has fueled expectations of further monetary tightening by the Bangko Sentral ng Pilipinas ( BSP ). However, market focus remains primarily on the dollar's overall strength and global investor sentiment. A trader added that the outlook for inflation and global developments continue to shape market sentiment.
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.
