Peso Slips Below 63 vs Dollar as Rate Hike Expectations Rise

The Philippine peso extended its losing streak and hit a fresh record low of 62.86 per US dollar, surpassing its previous record of 62.68 set on September 11.

The decline in the peso's value was due to growing expectations of interest-rate hikes by major central banks, including the US Federal Reserve (Fed), which could bolster the appeal of dollar-denominated assets and put further pressure on currencies like the peso.

Trading was subdued, with turnover falling to $969.22 million from $1.1 billion in the previous session.

The European Central Bank raised rates last week and signaled that further increases could follow, adding to the hawkish expectations that weighed on the peso.