Peso Hits New Low at 62.40:$1 Amid Dollar Strength

The Philippine peso has fallen to a fresh record low of 62.40:$1, surpassing its previous low of 62.265 on August 28. The peso's depreciation is attributed to the strengthening dollar and higher global borrowing costs, driven by rising US Treasury yields, expectations of a Federal Reserve rate hike, and elevated oil prices.

According to Ruben Carlo Asuncion, UnionBank chief economist, 'the peso's depreciation to a fresh record low reflects a stronger dollar environment driven by rising US Treasury yields, growing expectations of a Federal Reserve rate hike and higher oil prices amid escalating geopolitical tensions in the Middle East.'

The peso opened at 62.25, its strongest level of the day, before weakening to 62.40, its weakest intraday level. The total trading volume stood at $1.31 billion.