The Philippine peso fell to a fresh record low on Tuesday, weakening further past the 62-per-dollar level as higher oil prices, geopolitical risks, and a stronger dollar pressured the currency.
The peso declined 13 centavos to close at 62.40 per dollar, according to data from the Bankers Association of the Philippines. The move surpassed the previous record closing low of 62.27 set Aug. 28.
Market activity eased, with trading volume falling to $1.3 billion from nearly $2 billion in the previous session.
The Philippine peso remains Asia’s ‘weakest link,’ MUFG Bank Ltd. earlier said, despite the central bank’s recent rate hike, as policymakers balance inflation control with weak economic growth.
For Asian currencies, in a noted released on Monday, it added that the key question is increasingly whether inflation will remain persistent enough to warrant further monetary tightening.
On Friday, the Philippine peso fell to a record low, dropping below 62 per dollar for the first time, as rising oil prices and a stronger US dollar outweighed the effects of the central bank’s recent interest-rate hike.