The Philippine peso falls below 63 against the U.S. dollar for the first time

China News Service, Manila, October 15 (Reporter Zhou Jing) The exchange rate of the Philippine peso against the US dollar hit a record low on the 15th, falling below the 63 peso mark per US dollar for the first time.

According to data from the Philippine Bankers Association, the peso fell to 63.15 pesos per U.S. dollar in early trading on the 15th, setting a new intraday low of 62.925 pesos per U.S. dollar. It closed at 63.06 pesos per U.S. dollar that day, down 0.19 pesos from 62.87 pesos per U.S. dollar on the previous trading day, setting a record low for the 27th time this year.

Market analysts pointed out that U.S. inflation is higher than expected, causing market concerns that the Federal Reserve may maintain high interest rates or further raise interest rates; geopolitical risks such as tensions in the Middle East have also intensified market risk aversion, putting pressure on the Philippine peso.

Data from the Philippine central bank showed that the country’s international foreign exchange reserves fell to US$99.997 billion at the end of September, the lowest level since September 2023. The Philippine central bank said the decrease in reserves was mainly affected by factors such as net foreign exchange operations, downward revisions in reserve asset valuations and changes in government foreign currency deposits. International foreign exchange reserves are an important buffer to protect import payments, repay foreign debts and respond to external economic shocks.