Peso drops to another record low at 57.135

The peso once again plunged to an all-time low for the fourth straight trading day, closing at 57.135 against the US dollar on Wednesday.

The local currency was weaker by 0.135 or 0.2 percent against the greenback from the previous day's 57.00.

It opened the day at 57.00. The peso traded from 57.00 to 57.33 for an average of 57.216. Volume reached $1.2327 billion.

"Because of higher dollar against major global currencies on more hawkish Fed signals recently; weaker peso, which depreciated against the dollar by P6.136 or 12 percent since the start of 2022, could lead to higher inflation and more aggressive local policy rate hikes to help stabilize both the peso exchange rate and overall inflation," chief economist Michael Ricafort of Rizal Commercial Banking Corp. told Daily Tribune.

"The peso is also weaker after the local stock market, the PSEi, corrected lower for the second day in three days, 155.52 points or 2.3 percent to close at 6,554.08, new lows in nearly a month [since August 11, 2022]; but still near three-month highs, nevertheless," Ricafort said.

Ricafort added that an offsetting positive factor for the peso is that Global crude oil prices declined to new seven-month lows, "which could reduce the country's oil import bill, narrow the trade deficit, and could somewhat help ease inflationary pressures."