Peso sinks to new all-time low P56.999 versus dollar

The Philippine peso depreciated against the US dollar for the third straight trading day on Monday to hit a fresh all-time low, given the continued strength of the greenback.

The local currency shed 22.9 centavos to close at P56.999:$1 versus last Friday’s finish of P56.77:$1, its previous record low. It also hit a new intraday record low of P57.00:$1.

The weakening of the peso came after officials of the Federal Reserve earlier maintained a hawkish stance, with Chair Jerome Powell hinting of tight monetary policy “for some time” before inflation is placed under control.

"Generally stronger US dollar vs. major global currencies recently due to hawkish signals from some Fed officials, especially since the Fed’s yearly Jackson Hole Symposium more than a week ago,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort said in a mobile message.

Ricafort also noted employment data in the United States, indicating that the country could still accommodate further policy tightening moving forward.

“Peso also weaker after the new record-high outstanding national debt,” he added.

The Philippine government’s running debt stock ballooned to a new all-time high of P12.89 trillion, according to data released by the Bureau of the Treasury (BTr) over the weekend. —NB, GMA News