PH Peso Records New Low Against US Dollar

The Philippine peso reached a new record low against the US dollar before closing with a slight comeback, according to the Bankers Association of the Philippines.

This comes after the Philippine peso reached PHP56.45 against USD1 in intraday trading.

The peso, however, closed at PHP56.42 against the dollar.

The peso has been decreasing in value since the start of the year, with the local currency decreasing by over PHP5 since January as it closed at PHP50.999 against the US dollar on the first trading day of 2022.

With the new low the peso has recorded this year, the local currency has now matched the PHP56.45 against the dollar that was last recorded in October 2004, falling short of 18 years by mere months.

The peso continues to decline despite efforts by the Bangko Sentral ng Pilipinas (BSP) such as more aggressive rate hikes.

The continuous decline of the local currency has been attributed to fears of a recession in the US.

Moreover, the declining peso adds to rising inflation in the Philippines, with BSP forecasting the inflation rate at 5.9 to 6.7 percent this month.

This is in stark contrast to the Inflation rate BSP forecast for 2022 is expected to settle above the target range of 2-4%, according to its Monetary Policy Report. (GFB)