The Philippine peso weakened further on Tuesday, September 8, falling to a new record low of P62.625 against the US dollar.
The latest decline surpassed the previous record low of P62.59, which was recorded on September 4.
The peso first breached the P62-to-a-dollar level on August 28, continuing its downward trend amid concerns over inflation, oil prices, and global economic conditions.
A Palace official earlier said the government remains “focused on fiscal discipline and more efficient use of public funds” as the peso continues to weaken against the US dollar.
Bangko Sentral ng Pilipinas Governor Eli Remolona also said the central bank is closely monitoring developments in the foreign exchange market following the peso’s breach of the P62 level.
Analysts have warned that the weakening peso, combined with rising global oil prices, could add to inflationary pressures. A weaker peso makes imported goods, including fuel, more expensive in local currency.
On the other hand, the stronger dollar could initially benefit families of overseas Filipino workers, who would receive more pesos for every dollar remitted to the Philippines. However, higher inflation could eventually reduce the purchasing power of these remittances.
