Philippine peso slips past 61.8 per dollar to record low
The Philippine peso weakens past 61.8 per dollar to a new all-time low, surpassing 61.850 set in July, as oil rises and foreign-exchange reserves fall nearly 7% to $103 billion.
The Philippine peso weakened past 61.8 per dollar, hitting a new all-time low as rising oil prices put renewed pressure on the currency.
The peso surpassed the previous record low of 61.850 set in July, as Brent crude jumped more than 5% over the past four days amid renewed Middle East tensions and concerns over energy supplies.
The Philippines is particularly vulnerable to higher oil prices as it imports almost all of its oil requirements, raising the risk of stronger inflationary pressures.
The Bangko Sentral ng Pilipinas has already raised its policy rate to 4.75% and intervened in the foreign-exchange market, but continued oil gains and elevated global bond yields could keep pressure on the currency.
President Ferdinand Marcos Jr. also indicated that they will not use all of the country’s reserves to defend the peso.
The currency has now lost more than 5% this year, ranking among Asia’s weakest performers, while foreign-exchange reserves have fallen nearly 7% to $103 billion.