The Philippine peso strengthened back to the 59-per-dollar level on Wednesday morning after risk appetite improved
MANILA, Philippines — The Philippine peso weakened below the 62.5-per-dollar level on Wednesday to hit another record low, extending its slide as a stronger greenback and rising oil prices fueled inflation concerns.
The local currency opened at 62.4 per dollar before widening its losses to an intraday low of 62.58 during morning trading, according to data from the Bankers Association of the Philippines.
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The move came as renewed hostilities in the Middle East pushed oil prices higher and boosted demand for the dollar as a haven. Brent crude rose almost 1 percent on Wednesday, while the dollar held firm against major currencies.
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On Tuesday, the peso closed at a record-low 62.40 as higher oil prices, geopolitical risks, and a stronger dollar weighed on the currency.
Earlier, MUFG Bank Ltd. said the Philippine peso remains Asia’s “weakest link,” despite the central bank’s recent rate hike, as policymakers balance inflation control with weak economic growth. /pai
