The Philippine peso fell below the $1 to 62 pesos mark on Friday, breaking through this much-publicized level, putting additional pressure on the benchmark stock index, which is facing its biggest monthly decline since March. The biggest drop in the peso reached 0.6%, falling to a record low of 62.25, surpassing the previous low of 61.995 set earlier this month. Affected by higher crude oil prices, the peso continued to weaken until now. Some analysts have pointed out that the 62 mark may trigger intervention by the authorities. The Bank of the Philippines said in a statement in response to media inquiries: “We are monitoring the foreign exchange market.” The bank added that policymakers' intervention “was to deal with the disorderly state of the market and calm extreme fluctuations, especially when fluctuations are likely to increase inflation.” Bank of the Philippines Governor Eli Remolona stated on Wednesday that policymakers will not stick to a specific exchange rate, but are working to mitigate sharp fluctuations in the local currency. The peso depreciated by more than 5% against the US dollar this year, making it one of the worst performing currencies in Asia.

The Philippine peso fell below the $1 to 62 pesos mark on Friday, breaking through this much-publicized level, putting additional pressure on the benchmark stock index, which is facing its biggest monthly decline since March. The biggest drop in the peso reached 0.6%, falling to a record low of 62.25, surpassing the previous low of 61.995 set earlier this month. Affected by higher crude oil prices, the peso continued to weaken until now. Some analysts have pointed out that the 62 mark may trigger intervention by the authorities. The Bank of the Philippines said in a statement in response to media inquiries: “We are monitoring the foreign exchange market.” The bank added that policymakers' intervention “was to deal with the disorderly state of the market and calm extreme fluctuations, especially when fluctuations are likely to increase inflation.” Bank of the Philippines Governor Eli Remolona stated on Wednesday that policymakers will not stick to a specific exchange rate, but are working to mitigate sharp fluctuations in the local currency. The peso depreciated by more than 5% against the US dollar this year, making it one of the worst performing currencies in Asia.