The peso on Monday matched an all-time low of 59 against the US dollar in a span of one week on continued hawkish signals from US Federal Reserve officials of another huge rate hike.
Bankers Association of the Philippines data showed that the peso lost eight centavos to close at 59 a dollar, down from 58.92 on Friday. Trading volume reached $402 million, down from $483.35 million previously.
The first time the peso closed at the record-low of 59 per US dollar was on Oct. 3.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso was weaker on recent upward correction of the US dollar against major global currencies “after continued hawkish signals from Fed officials” and the better-than-expected US employment data that could support further Fed rate hikes.
“The latest increase in the US dollar/peso exchange rate was also partly due to higher global crude oil prices correcting higher to new 1-month highs [but still among 7.5-month lows], after OPEC+ cut oil production output by -2 million barrels per day [the most since 2020],” he said.
Ricafort said the offsetting factor for the peso was the latest $2-billion global bond sale by the national government whose proceeds could add to the gross international reserves and balance of payments.
Latest Bangko Sentral ng Pilipinas data showed that the GIR declined to a new two-year low of $95 billion.
The peso has depreciated by P8 or 15.7 percent from 50.999 in end-2021.
BSP Governor Felipe Medalla had said local monetary authorities would not allow excessive movements in the peso-dollar exchange rate.
Medalla confirmed the BSP was “very active” in the foreign exchange market.
