MANILA - The Philippine peso hit a new 10-year low on Monday amid the expected rate hike by the US Federal Reserve next month.
The peso closed at P50.27 to $1, its lowest level since P50.32 to $1 in September 26, 2006, data from the Philippine Dealing System showed.
The peso opened weaker at P50.24 to $1 from Friday's 50.215 to $1, and depreciated further to an intraday low of 50.285 to $1.
The perception of the exchange rate movement could be driven by uncertainties due to another US rate hike and policies of the Trump administration, Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo said.
Local politics are also dictating the weakening of the peso against the dollar, an analyst said.
"We attribute this local political uncertainties especially in the last couple of weeks. This set of political developments leading to intensified political noise result to cautious views tending to favor US dollar rather than the peso," said ING Bank Manila chief economist Joey Cuyegkeng said.
The country's external payments position including a widening trade deficit and lower current account surpluses also contribute to the peso's underperformance, he added.