exchange rates

Dollar’s rally plunges Philippine peso to record low of P56.77

Ralf Rivas
Dollar’s rally plunges Philippine peso to record low of P56.77
Higher interest rates are making the dollar attractive for investors, but eroding the value of other currencies

MANILA, Philippines – The Philippine peso sank to an all-time low on Friday, September 2, as the United States dollar continued its rally.

The peso closed at P56.77 against the greenback, even reaching P56.90 intraday. The Philippine currency’s previous weakest level was P56.45, recorded on October 14, 2004.

Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed the dip to the dollar gaining strength against major global currencies and the benchmark 10-year US Treasury yield hitting a two-month high.

Ricafort also noted that the currency movements were due to the hawkish Federal Reserve’s “higher for longer” policy to bring down inflation.

Higher interest rates are making the dollar attractive for investors, but eroding the value of other currencies.

The next “psychological” resistance level for the peso is at P57, Ricafort said. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.