The Philippine peso fell to a new record low of P63.52 against the US dollar on Thursday, October 22, surpassing its previous record of P63.361 on Wednesday, October 21.

The local currency weakened to an intraday low of P63.545 before recovering slightly at the close of trading.

The peso’s depreciation could increase the cost of oil imports and fuel inflation and raise the peso value of the country’s foreign debt. While overseas Filipino workers’ families may receive more pesos from dollar remittances, rising prices could erode their purchasing power.

The Bangko Sentral ng Pilipinas (BSP) has raised its key policy rate to 5.5 percent amid heightened inflation risks. However, BSP Governor Eli Remolona said the rate hike was not intended to defend the peso.