Phl peso sinks to new record low of 63.61 to USD

OFWs get more pesos for their dollars now

The Philippine peso has continued its free-fall, plunging to a fresh record low of ₱63.615 to the US dollar today, Friday, marking its 31st record low of the year. 

The peso closed 9.5 centavos down from Thursday’s close of Php63.52 to the greenback.

The local currency hit an intra-day  low of  Php63.62 to US$1 during the day.

The currency’s continuing decline, off 7% of its value since the start of the year, makes it one of the weakest in the region.

The escalating tension in the Middle East and the consequent rise in fuel prices has driven up the country’s import and fuel bills. 

The decision by the Bangko Sentral ng Pilipinas to raise its key policy rate by 50 basis points to 5.50% while lifting its inflation forecast has also dampened investor confidence.

Analysts warn that the psychological ₱64:$1 barrier  could be tested in the coming days or weeks if investors continue to keep away. 

BSP Governor Eli Remolona Jr. said that the central bank is not intervening just to defend a specific exchange rate floor, but is focusing instead on curbing excessive volatility that fuels inflation.