Philippine Peso Hits Record Low of 63.06 Per Dollar

The Philippine peso hit a fresh all-time low on Thursday, October 15, closing at 63.06 per US dollar. This marks the 27th time the currency has reached a record low this year, surpassing the previous record of 62.90 set on October 8. During early trading, the currency dipped to an intraday low of 63.15, while spot-market volume rose to approximately $1.5 billion.

The depreciation follows a US Department of Labour report showing annual consumer price index growth of 3.7 percent, exceeding the 3.6 percent forecast by economists. This data reinforced expectations that the Federal Reserve System will maintain high borrowing costs or implement another interest rate hike during its October 27-28 policy meeting. Additionally, ongoing geopolitical tensions in the Middle East have pressured oil supplies, further weakening the peso.

Domestically, Philippine headline inflation accelerated to 7.2 percent in September. Despite the currency's decline, the Philippine Stock Exchange Index rose 0.82 percent to 5,663.17 as investors engaged in bargain hunting. Market participants are now awaiting guidance from the Bangko Sentral ng Pilipinas, which is currently in a quiet period ahead of its next policy meeting.