Peso hits new record low of P62.9 vs dollar

MANILA, October 9 ------ The Philippine peso closed at a record low of P62.9 against the dollar. The peso previously closed at a record low of P62.86 to $1 on September 14.

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 of 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. Since the start of the US-Iran war, the peso has depreciated by P5.21, or 9 percent, against the dollar.

Source: news.abs-cbn.com