Photo illustration of US dollar to PH peso exchange. Photo

The Philippine peso sinks against the US dollar, closing at another record low of P59 to $1 on Monday.

The peso depreciation against the dollar is seen as the US Federal Reserve signals more rate hikes in the near term starting with its meeting in early November.

The Bangko Sentral ng Pilipinas is also set to hold a monetary policy meeting on Nov. 17, which is a few weeks behind the Fed’s schedule.

The BSP in July implemented a 75-basis point off-cycle interest rate hike ahead of its scheduled meeting. So far, the BSP raised the benchmark rate to 4.25 percent to cool down inflation.

Interest rate hikes can also help in “stabilizing” the peso, BSP Gov. Felipe Medalla said.

The Philippine peso worst showing against the US dollar marking the 12th all-time low of the currency so far this year with further policy tightening expected in the United States.

The peso shed 32.5 centavos to close at P59:$1 from last Friday’s P58.625:$1.

This 12th all-time low of the peso against the US dollar this year, after the previous records on September 2 (P56.77:$1), September 5 (P56.999:$1), September 6 (P57.00:$1), September 7 (P57.135:$1), September 8 (P57.18:$1), September 16 (P57.43:$1), September 20 (P57.48:$1), September 21 (P58$1), September 22 (58.49:$1), September 23 (P58.50:$1), and September 27 (P58.99:$1).

With the latest close, the peso has now depreciated by P8.00 or 15.7% from the P50.999:$1 during the last trading day of 2021.