Peso hits new record low, closes at 63.06 vs dollar

MANILA, October 16 ------ The peso fell to a new record low of P63.06 against the dollar at the close of trading on Oct. 15.

During intraday trading, the local currency weakened to as low as P63.15. The peso's previous record low was P62.9 against the dollar on October 8. A weaker peso is expected to make oil purchases even more expensive as the commodity is purchased with dollars. It is also expected to stoke inflation.

The depreciation is also expected to impact the country’s sovereign debt, of which a third is owed to foreign creditors. On the other hand, a stronger dollar may initially benefit families of overseas Filipino workers, as they can get more pesos for every dollar sent. But inflation may also eat into their purchasing power.

Prior to the attack by the US and Israel against Iran at the end of February, the peso was on a winning streak, clawing back to P57.665 on Feb. 27, which was the last trading day for the month. Since the start of the conflict, the peso has depreciated by 9.4 percent or P5.395 against the dollar.

Source: news.abs-cbn.com