Philippine peso slides further against US dollar, closes at P57.78
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by Balikbayan Store
1 min reading time
The Philippine peso continued its downward trend against the US dollar on Thursday, closing at P57.78 compared to its previous close of P57.55 on Wednesday. In intraday trading, the peso dipped as low as P57.96.
Charmaine Co, a research analyst at COL Financial, attributed the peso's depreciation to the dollar's strength. She emphasized the prevailing strength of the dollar across various currencies, anticipating delayed interest rate cuts.
Echoing this sentiment, the Bangko Sentral ng Pilipinas linked the peso's recent decline to the robust dollar, citing expectations that the US Federal Reserve would postpone interest rate cuts. Fed Chairman Jerome Powell's remarks last week, indicating a possible delay in rate cuts due to persistent inflation, reinforced this expectation.
The weaker peso could benefit exporters, as it makes Philippine-made goods more competitively priced in international markets. Additionally, families of overseas Filipinos receiving dollar remittances stand to gain as they receive more pesos per dollar. However, importers face challenges as import costs escalate, particularly for commodities like oil and fuels.
