Peso slides to record-low P57

The peso closed marginally weaker against the dollar for the third straight day, reaching a new record low of P 57:$1.

"The peso exchange rate is relatively little changed at the record 57.00, after slightly lower than expected inflation rate at 6.3 percent in August 2022, after 6.4 percent in the previous month [July 2022]; as well as the latest rollback in local fuel pump prices," Michael Ricafort, chief economist of Rizal Commercial Banking Corp. told Daily Tribune.

"Offsetting risk factor: OPEC+ agreed to cut output by 100,000 barrels/day in October 2022, though global crude oil prices still hovered among the lowest in six to seven months recently," he added.

The benchmark 10-year US Treasury yield at new 2.5-month highs, now at 3.26 percent, partly supported the recent higher US dollar vs. major global currencies amid hawkish Fed signals recently amid the need to keep Fed rates higher for longer to bring down elevated US inflation/CPI, the economist said.

"Since the start of 2022, the peso has already depreciated against the dollar by a total of P6.001 or 11.8 percent [against 50.999 in end-2021], as this could also lead to higher inflation," Ricafort said.