The Philippine peso tumbled to a new record low on Tuesday, breaching the 61-peso level against the US dollar for the first time. The currency closed at 61.02 to $1, surpassing the previous worst of 60.99 set in October 2022.
Analysts attributed the slide to persistent global dollar strength, rising US interest rates, and domestic economic uncertainties. The Bangko Sentral ng Pilipinas said it is closely monitoring the situation and stands ready to intervene if excessive volatility persists.
"The peso's weakness reflects external pressures rather than fundamental flaws in the Philippine economy," a central bank official said. "We have adequate buffers to manage any disorderly moves."
The record low has raised concerns about imported inflation and the cost of servicing foreign debt. However, exporters and overseas Filipino workers stand to benefit from a weaker peso.