Peso Tumbles to New Low Against Dollar Amid Fed Rate Hikes

The Philippine peso continued its decline against the US dollar for a second consecutive trading day on Monday, September 21. The local currency shed 3.1 centavos to close at P62.78:$1 versus last Friday's finish of P62.749:$1.

The depreciation comes as Federal Reserve officials made hawkish statements, citing elevated inflation as a reason for further tightening. This has boosted the attractiveness of the dollar, according to Rizal Commercial Banking Corp.'s chief economist Ricafort.

Ricafort predicted that the exchange rate could range between P62.65:$1 and P62.85:$1 on Tuesday, September 22. The peso's weakness is also attributed to the latest Fed rate hike and elevated US Treasury yields.