Think your money is safe from the currency market? The Philippine peso just slid to another all-time low, closing at 62.40 to the dollar on Monday, its third straight record-low close. That is not just a number on a screen. It is the price of the fuel you pump, the imports you buy, and the debt the country owes abroad.
How far has the peso fallen?
The local currency opened at 62.25, its strongest level of the day, before weakening to as much as 62.40 and closing at its weakest intraday level. Data from the Bankers Association of the Philippines showed the peso depreciated by 13.5 centavos from its previous record-low close of 62.265 on Aug. 28. Total trading volume reached $1.31 billion.
| Metric | Level |
|---|---|
| Closing rate | 62.40 per dollar |
| Intraday open | 62.25 (strongest) |
| Intraday low | 62.40 (weakest, new record) |
| Change from Aug 28 close | down 13.5 centavos |
| Day trading volume | $1.31 billion |
Why the peso keeps sliding
The pressure is coming from abroad, not home. UnionBank chief economist Ruben Carlo Asuncion pointed to a stronger dollar, rising US Treasury yields, expectations of a Federal Reserve rate hike and higher oil prices amid Middle East tensions. RCBC chief economist Michael Ricafort noted the 10-year US Treasury yield climbed to about 4.78 percent, among its highest levels in more than a year, making dollar assets more attractive. Federal Reserve Chair Kevin Warsh also warned that US inflation had yet to slow meaningfully.
- Stronger dollar environment
- Rising US Treasury yields
- Expected Fed rate hikes
- Higher oil prices on Middle East tension
What a weak peso does to your wallet
For an oil-importing economy like the Philippines, a cheaper peso raises the cost of fuel and other imports, feeding inflation. That matters to anyone budgeting for transport, groceries and loan payments as the currency keeps testing new lows.
What could cushion the fall
Asuncion said dollar inflows from overseas Filipino remittances, BPO revenues, tourism receipts and foreign investments could help soften the blow against excessive swings. Even so, he expects global factors to stay the primary driver in the coming months, keeping the currency on the defensive while investors await fresh US economic data.
