Peso plunges to fresh lifetime low of 58 against US dollar; Will it drop further?

The Philippine peso plummeted to its lowest level today, eclipsing the previous record low of P57.48 logged on Tuesday.

The peso finished at P58 against the US dollar, losing 52 centavos from the previous day’s close. It opened the day’s trade at P57.70.

Volume rose to $1.051 billion from $967 million a day ago.

“The US dollar/peso exchange rate again posted a new record high for the second straight day ahead of the widely expected large Fed rate hike of at least 0.75 on Sep. 21, 2022 that increases the attractiveness of the US currency with higher interest rate income on US dollar deposits/fixed income investments/securities,” RCBC chief economist Michael Ricafort said.

Ricafort said the peso also weakened after the benchmark 10-year US Treasury yield posted new 11-year high of 3.6 percent on September 20.

The peso has already depreciated by a total P7 or 13.7 percent since the start of the year.