Another peso low at 57.18

September 9, 2022

The peso closed at a new record weakness for the sixth straight day, by 0.045 or 0.1 percent to a new record close at 57.18 on Thursday.

The peso has opened at 57.07, hit a high of 57.22, a low of 57.06, before closing at 57.18 in an average of 57.14. Trading volume reached $1.151 billion.

“Another contributor to the currency decline is the latest gross international reserve data which reached new two-year lows,” chief economist Michael Ricafort of Rizal Commercial Banking Corp. told Daily Tribune.

More pains ahead

“It could lead to higher inflation and more aggressive local policy rate hikes to help stabilize both the peso exchange rate and overall inflation amid market expectations and signals from some US Federal Reserve officials of more rate hikes for longer in an effort to bring down elevated US inflation,” the economist added.

It will lead to higher US Treasury yields, with the benchmark 10-year US Treasury yield still hear a 2.5-month high of 3.26 percent, which also supported sentiment on the US currency, Ricafort said.

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