Peso weakens again, dropping to 57:$1 | Inquirer Business
Another record low

Peso weakens again, dropping to 57:$1

/ 02:12 AM September 07, 2022

Demand for OFWs revving up remittances growth

The Philippine peso weakened to yet another new record level for the third-straight trading day at 57:$1.

ADVERTISEMENT

The local currency closed on Tuesday spot trading at the weakest end of the intraday range after opening at 56.888:$1.

“The peso exchange rate was relatively steady after a slightly lower-than-expected inflation rate [was reported] at 6.3 percent in August [from] 6.4 percent in the previous month, as well as the latest rollback in local fuel pump prices,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

FEATURED STORIES

Ricafort said that, on the other hand, news of a decision by major crude oil producers —the Organization of Petroleum Exporting Countries and their allies including Russia— agreed to cut output by 100,000 barrels per day starting October adds to the risk that the peso will depreciate further.

A big chunk of the Philippines’ import bill consists of payments for petroleum products.

Ricafort said that since 50.999:$1 at the end of 2021, the peso has already depreciated against the US dollar by a total of almost 12 percent.

According to ING Bank, most central banks around the world are now firmly fixated on addressing the biggest inflation threat since the 1980s, and are now very much focused on slowing demand with restrictive monetary policy.

“This theme is very much playing out in global [foreign exchange] markets,” ING Bank said in a commentary. “Left in the ascendancy remains the dollar—buoyed also by a hawkish [United States Federal Reserve which is] very happy to take the policy rate close to 4 percent and also US energy independence.

The Dutch bank said the dollar is the pre-eminent safe currency right now as it is at its strongest in over 20 years.

The business headlines in under one minute

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, depreciation, dollar, Peso
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.