Peso hits new record low, breaches P63 vs dollar in intraday trade
US dollar and peso bills, September 30, 2022. Gigie Cruz, ABS-CBN News/FileMANILA — The peso hit a record low of P63.15 against the dollar in intraday trading on Thursday, October 15.
The peso previously hit a record low of P62.9 against the dollar on October 8.
A weaker peso is expected to make oil purchases even more expensive as the commodity is purchased with dollars. It is also expected to stoke inflation.
The depreciation is also expected to impact the country’s sovereign debt, of which a third is owed to foreign creditors.
On the other hand, a stronger dollar may initially benefit families of overseas Filipino workers, as they can get more pesos for every dollar sent. But inflation may also eat into their purchasing power.
Prior to the attack of the US and Israel against Iran at the end of February, the peso was on a winning streak, clawing back to P57.665 on Feb. 27. Since the start of the US-Iran war, the peso has depreciated by P5.21, or 9 percent, against the dollar.