MANILA, Oct. 15 (Xinhua) -- The Philippine peso closed at 63.06 pesos per U.S. dollar on Thursday, surpassing the previous record low of 62.90 on Oct. 8 and hitting a record low for the 27th time this year, according to data from the Bankers Association of the Philippines.
The Philippine peso weakened to a new all-time low of 63.15 pesos to 1 U.S. dollar in early trading Thursday, surpassing its previous intraday record of 62.925 pesos to 1 U.S. dollar.
Ruben Asuncion, chief economist at Union Bank of the Philippines, attributed the peso's depreciation to stronger U.S. inflation, which has fueled expectations that the U.S. Federal Reserve will sustain elevated borrowing costs.
He said such expectations bolster the U.S. dollar and push up U.S. Treasury yields, dampening investor appetite for emerging-market currencies such as the Philippine peso.
The consumer price index (CPI) of the United States rose 0.6 percent from August and 3.7 percent from a year earlier, according to the U.S. Labor Department on Wednesday. Economists had forecast an annual increase of 3.6 percent.
The report added pressure on the U.S. Federal Reserve ahead of its Oct. 27-28 policy meeting, with investors raising bets on another interest rate hike. ■