Peso Plummets Near 63 vs Dollar Amid Strong US Jobs Report

The Philippine peso touched a new record low against the US dollar on Monday, hovering near the 63-per-dollar level. Despite efforts by the central bank to contain inflation and support the currency through higher interest rates, the peso continues to slide.

The BSP raised its benchmark rate by a quarter percentage point to 5 percent last month in response to emerging inflation risks. However, this move has not been enough to stem the peso's decline.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., revised his trading forecast for the peso to 62.6 to 62.9 per dollar, citing a stronger-than-expected US labor report that firmed views of a potential US policy rate hike this month.

Nomura Global Markets Research expects the central bank to raise its benchmark rate by another quarter point to 5.25 percent at its October meeting, warning that further increases may be needed if core inflation continues to rise.