Philippine Peso Hits Record 62.71 per Dollar as Oil Shock and Deficits Deepen Pressure
Updated
Updated · Al Jazeera English · Sep 4
Philippine Peso Hits Record 62.71 per Dollar as Oil Shock and Deficits Deepen Pressure
1 articles · Updated · Al Jazeera English · Sep 4
Summary
62.71 pesos bought $1 on Friday, marking a fresh record low after the currency had already slid about 6% since January 1.
Rising oil prices after Iran's Strait of Hormuz shutdown forced Philippine importers to buy more dollars for crude, while higher US Treasury yields pulled investors toward dollar assets.
Large fiscal and current-account deficits and 6.1% August inflation have left the peso especially exposed; analysts say it could weaken past 63 if oil stays above $90 a barrel.
For households, the slide raises the peso cost of fuel, transport and other import-linked goods, even as exporters, tourism and families receiving overseas remittances get some cushion.
Marcos's administration has pledged tighter fiscal discipline and expects central bank intervention if needed, while $35.63 billion in remittances last year still provides only a partial buffer.