By Eileen Mencias
The Philippine peso sank to a record low against the US dollar on Wednesday, October 21, ahead of a central bank policy meeting expected to deliver an interest rate increase to curb inflation and support the weakening currency.
The peso closed at ₱63.361 per dollar, down 27.1 centavos from Tuesday’s previous record low of ₱63.09, according to the Bankers Association of the Philippines.
The currency hit an intraday low of ₱63.373 after opening at ₱63.01. Trading volume slipped to $1.34 billion from $1.36 billion on Tuesday.
The latest decline came less than a week after the peso first breached the ₱63-per-dollar mark on October 15.
Inflation rose to 7.2% in September from 6.1% in August, driven partly by higher food, transport and energy costs.
A weaker peso threatens to push prices higher by raising import costs, particularly for fuel and food.
While higher interest rates could help stabilize the currency, they also risk dampening consumer spending and investment in an already slowing economy.
The peso has come under pressure from sustained dollar demand, elevated global oil prices and uncertainty over the US Federal Reserve’s monetary policy outlook.
