Peso historic low after 57 close

The peso exchange rate closed relatively little after the slightly lower than expected inflation rate at 6.3 percent

September 7, 2022

The local currency closed marginally weaker against the dollar but it set another record weakness at 57, the fourth straight day of the currency slide on Tuesday.

The exchange rate opened at 56.888, at a high of 56.93, low of 56.86, latest at 56.92 (from 56.99 closed on 5 September).

“The peso exchange rate closed relatively little after the slightly lower than expected inflation rate at 6.3 percent in August 2022 from 6.4 percent in 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.

Ofsetting factor

Ricafort cited the offsetting risk factor which was OPEC+ agreeing to cut output by 100,000 barrels per day in October 2022, though global crude oil prices still hovered at 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, the economist said.

“Since the start of 2022, the peso already depreciated against the dollar by a total of P6 or 11.8 percent as this could also lead to higher inflation,” Ricafort said.


Read more Daily Tribune stories at: https://tribune.net.ph/

Follow us on social media
Facebook: @tribunephl
Youtube: TribuneNow
Twitter: @tribunephl
Instagram: @tribunephl
TikTok: @dailytribuneofficial