1 month ago
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Following the central bank’s decision to keep key interest rates on hold, the peso strengthened further on Friday, Feb. 14, breaking into the 57 level against the US dollar.
According to data from the Bankers Association of the Philippines, the peso appreciated by 0.23 centavos from Thursday’s closing rate of ₱58.06 against the greenback.
The ₱57.83 marks the local currency’s strongest level in two months since Dec. 6, 2024 at ₱57.735.
During the session Friday, the peso opened at ₱57.95 against the dollar. It’s intraday best ₱57.81 while its intraday low stood at ₱57.96.
The trading volume for dollars increased to $1.66 billion on Friday from $1.64 billion on Thursday.
According to Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), the peso strengthened as the U.S. dollar weakened globally.
Ricafort said the greenback’s decline followed signals that the U.S. may delay proposed tariffs and Trump-Putin talks on ending the Russia-Ukraine war, which also drove oil prices lower.
Additionally, the Bangko Sentral ng Pilipinas’ (BSP) decision to keep policy rates unchanged—maintaining the 1.25 percent interest rate gap with the U.S. Fed—further supported the peso.
Remolona earlier recognized the possibility of peso weakening against the U.S. dollar at P60:$1. However, he said the central bank’s main concern is managing large exchange rate fluctuations to prevent inflationary pressures.
“We don't worry too much about the number itself. We worry about large swings in the exchange rate because it's when we have large swings that we get this inflationary effect of the exchange rate,” he said.
