Peso plunges deeper to new historic low, closes at P61.567:$1

The Philippine peso crashed deeper to its weakest level against the US dollar on Wednesday, following continued hedging by importers that boosted demand for the greenback as imported fuel costs soared due to the Middle East war.

The local currency closed at P61.567:$1, shedding 26.7 centavos of its value from the previous record-low of P61.300:$1 seen on Tuesday.

The peso also touched an intraday low of P61.67:$1 after it opened at P61.2:$1.

UnionBank of the Philippines chief economist Carlo Asuncion said the local unit's weakness was caused by "a stronger US dollar, elevated oil prices, and persistent dollar demand from importers combined with global risk‑off sentiment."

"This move is largely externally driven, but it raises near‑term inflation risks and keeps pressure on the BSP (Bangko Sentral ng Pilipinas) as imported fuel and food costs rise. Until global tensions ease or the dollar softens, the peso is likely to remain under strain at current levels," Asuncion said.

Likewise, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso's close to a new record low of P61.567:$1 came "amid continued hedging activities by importers, investors, and others with requirements for US dollars… as a matter of prudence that triggered some purchase orders as part of managing market risks." — VDV, GMA News