The Philippine peso dropped past ₱62 per U.S. dollar on Friday, Aug. 28, reaching a new record low of ₱62.265 amid rising oil prices and market concerns.
The local currency opened at ₱62.05 per dollar before sliding further, exceeding its previous record low of ₱61.995 recorded earlier this month.
Meanwhile, the currency ended Thursday’s trading session at around ₱61.888 per dollar, reflecting continued pressure on the local market.
This decline was partly driven by higher oil prices, which could raise import costs and widen the country’s current-account deficit.
As the Philippines depends heavily on imported fuel, changes in global oil prices could put additional pressure on the economy.
However, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the central bank would not defend a specific exchange-rate level. Instead, it may step in to ease sharp and sudden market movements.
Furthermore, the BSP recently raised its benchmark interest rate from 4.75% to 5.00%, citing growing inflation risks.
For consumers, a weaker peso could make imported goods and fuel more expensive, adding to the cost of everyday products.
Written by Juan Rafael Bautista, Insight PH
Juan Rafael Bautista, Insight PH is a dedicated campus journalist and contributor. Their insightful writing sparks meaningful conversations and keeps the community informed.
