THE Philippine peso depreciated further closing at P56.37 to $1 on Tuesday from the previous close of P55.979, according to data from the Bankers Association of the Philippines.
The peso also hit 56.45 during intraday trading, which was a record low last seen in October 2004.
The exchange rate on Tuesday marked the second time the peso breached the P56 level this year.
According to analysts, the peso could further weaken in the short term, especially with the Fed’s upcoming meeting in July.
The US Federal Reserve is widely expected to aggressively raise its benchmark borrowing rate again by the end of this months. The Bangko Sentral ng Pilipinas is also expected to hike rates during its scheduled monetary policy-setting meeting on Aug. 18.
Meanwhile, the Philippine Stock Exchange index closed at the 6,349.94 level on Tuesday, losing 38.70 points or 0.61 percent.