Philippine Peso Sinks Past Php64 Vs US Dollar, Lowest Value In History
According to Bankers Association of the Philippines, the Philippine currency opened at P63.95 against $1, the same value on Monday, before hitting the intraday low of 64 against the dollar at 11.03 am (Philippine time).
Recommended For YouDespite the peso's plunge, however, Bangko Sentral ng Pilipinas (BSP) governor Benjamin Remolona Jr earlier said he does not see a need to intervene to support the local currency, noting:“We have estimates of how much the peso has to move before it becomes inflationary, and that's when we tend to intervene.”
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Economists fear the record-breaking slide will continue given the persistent concerns over the domestic economy and growing inflation.
A weaker peso means higher cost of imported goods, primarily petroleum products, such as crude oil and refined fuel, which account for significant dollar outflows.
The peso depreciation will not only pose risks to household purchasing power but will also translate to higher cost of servicing foreign-currency obligations, including the country's external debt.
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