Metro Manila, October 4 ------ The Philippine peso recorded a new all-time low of P59 to a US dollar, still bowing to pressure from the attractive greenback as the US Federal Reserve keeps interest rates high to stem rising consumer prices.
The local currency opened trade at P58.75, touched a low P59 and high of P58.72, according to Bankers Association of the Philippines data. The peso already reached P59 to a dollar on intraday trading on Sept. 28 and 29. The foreign exchange trading close marks the 12th time the peso set record lows for the year.
RCBC chief economist Michael Ricafort said in a mobile message the local unit still suffered from the impact of "continued hawkish signals from Fed officials." Last week, Federal Reserve Vice Chairman Lael Brainard said the US may keep high interest rates to fight inflation over global supply chain disruptions. Brainard herself admitted that the Fed's moves affect other economies.
The weaker peso also comes days before the Philippine government releases inflation data, with economists seeing faster price movements in September. Since closing out 2021 at P50.99, Ricafort said the peso already depreciated by 15.7% or a total of P8.
Source: cnnphilippines.com
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