Peso crosses 57:$1 territory

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February 17, 2026 | 12:00am

MANILA, Philippines — The peso rebounded back to the 57 to $1 level yesterday as a softer-than-expected inflation print in the United States lifted regional currencies and reinforced expectations of US Federal Reserve rate cuts later this year.

The local currency closed at 57.986 on Monday, appreciating by 3.4 centavos from its 58.02 finish on Friday, data from the Bankers Association of the Philippines showed.

This marked the currency’s strongest close in more than four months or since its 57.95-to-$1 finish on Oct. 8 last year.

The peso opened firmer at 57.95 versus the greenback. It weakened to an intraday low of 58.02, while its strongest level during the session stood at 57.685.

Trading volume declined by about 33 percent to $896.5 million yesterday from $1.34 billion last Friday, reflecting subdued market participation.

Chinabank chief economist Domini Velasquez said the peso tracked gains across Asian currencies after US consumer price index (CPI) data released last Friday came in below expectations, boosting market confidence that the Fed could begin easing policy as early as June.

“The softer US CPI print supported emerging market currencies, including the peso,” Velasquez said.

“However, we expect the peso to trade within a narrow range this week as liquidity thins ahead of the additional Chinese New Year holiday and as markets position cautiously ahead of the Bangko Sentral ng Pilipinas (BSP)’s policy decision on Thursday,” she added.

A trader likewise said the peso remains range-bound as Asian foreign exchange markets stay quiet amid holiday-thinned liquidity.

“The peso has been slightly firmer from last week’s highs, but there are no fresh macro catalysts to support a breakout. For now, this looks more like consolidation within a narrow range,” the trader said.

Market players are closely watching upcoming US economic data and policy signals from the BSP for any shift in near-term currency momentum, the trader added.

RCBC chief economist Michael Ricafort said the peso’s rally was part of a broader regional move, noting that the local currency has now strengthened for the fourth straight session and seven times in the last eight trading days.

“The peso is benefiting from a weaker US dollar amid improving global risk appetite, lower US Treasury yields and better US inflation data, which increased the odds of Fed rate cuts later this year,” Ricafort said.

He added that strong fundamentals at home, including record-high overseas Filipino worker remittances and the country’s elevated gross international reserves, have also helped support the peso.