Peso plumbs new depths, closes at 62.90:$1

MANILA, Philippines — The peso sank to a new record low against the dollar yesterday as elevated US interest rates supported the greenback and oil prices above $100 per barrel raised concerns over the Philippines’ import bill.

The currency closed at 62.90 to $1, weakening by 15 centavos from Wednesday’s 62.75 finish, based on Bankers Association of the Philippines data. This breached the previous all-time closing low of 62.86 set on Sept. 14.

The peso opened at 62.65, its strongest level during the session, before closing at its weakest point.

Trading volume increased by 20 percent to $1.45 billion from $1.21 billion the previous day.

UnionBank chief economist Ruben Carlo Asuncion attributed the decline to persistent dollar strength and rising external price pressures.

“The dollar continues to draw support from the Federal Reserve’s higher-for-longer policy stance and elevated Treasury yields, while oil prices above $100 per barrel have raised concerns over inflation and the country’s import bill,” Asuncion said.

Asuncion said the surprise acceleration in Philippine inflation to 7.2 percent in September reinforced expectations of further monetary tightening by the Bangko Sentral ng Pilipinas.

However, markets remained more focused on the dollar’s broad strength and global investor sentiment.

A trader likewise said the inflation outlook and developments abroad continued to dominate market sentiment.