Philippine peso on Thursday, September 6, closed at Php53.80, its lowest in 13 years, as investors switch to dollar due to fast inflation rate in the country.
From hitting a 12-year low on Wednesday, September 5, at Php53.55, the Philippine peso slipped further to Php53.80. The last time the Philippine currency was this low was December 2005, reported Inquirer.
The drop between the two days is also considered as the steepest drop of peso since June 2008.
Meanwhile, dirham-peso exchange has surpassed the 14.60 mark at Php14.66 on Thursday, September 6, as per XE Currency Converter.
A government report released on Wednesday, September 5, revealed that the Philippines’ inflation rate in August 2018 hit 6.4 percent, a new high in nearly a decade.
The new record high Inflation rate is only 0.2 percent shy from the 6.6 percent inflation rate recorded in March 2009.
For the past six months, inflation rate also exceeded the Bangko Sentral ng Pilipinas’ estimates of two to four percent.
Despite this, Budget Secretary Benjamin E. Diokno said the inflation is expected to slow down in the last quarter of the year. This was echoed Bangko Sentral Governor Nestor Espenilla who said that inflation will return within the comfort range next year.