Peso sets new record low ahead of BSP meet

The Philippine peso has sunk to a new low against the greenback

MANILA, Philippines — The Philippine peso fell deeper into the 63-per-dollar territory on Wednesday, ahead of the Bangko Sentral ng Pilipinas’ (BSP) next rate-setting meeting.

The local currency opened at 63.01 against the greenback before posting an intraday low of 63.3 as of 12:34 p.m., data from the Bankers Association of the Philippines showed.

That surpassed the previous record low of 63.23 set on Oct. 16.

All 20 economists polled by the Inquirer expect the BSP to tighten monetary policy at the Monetary Board’s Oct. 22 meeting. Eighteen forecast a quarter-percentage-point increase, while the other two expect a more aggressive half-point hike.

The central bank’s benchmark interest rate, which influences how banks price loans, stands at 5 percent. The BSP has raised it by a total of 75 basis points since April, as war in the Middle East drove up global oil prices, putting pressure on net energy importers such as the Philippines and weighing on their currencies.