Philippine peso falls to P58.27 against the dollar, lowest since November 2022
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by Balikbayan Store
1 min reading time
The Philippine peso depreciated further on Tuesday, closing at P58.27 to the dollar, marking its lowest level since it reached P58.275 on November 8, 2022, according to data from the Bankers Association of the Philippines.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona attributed the peso's depreciation to regional currency trends. "The dollar continued to strengthen as the Federal Reserve signaled a delay in cutting interest rates. The BSP continues to monitor the foreign exchange market but allows the market to function without aiming to protect a certain exchange rate," Remolona stated. He added, "Nonetheless, the BSP will participate in the market when necessary to smoothen excessive volatility and restore order during periods of stress."
Luis Limlingan, Head of Sales at Regina Capital Development, commented on the BSP's cautious stance regarding interest rates. "I think they want to stimulate growth so that we can hit about the 6 percent mark, but it might hit the currency because of the interest rate differential," Limlingan told ANC.
Since the beginning of the year, the peso has lost P2.60 or approximately 4.7 percent against the dollar. This depreciation increases the cost of imports, such as crude oil and rice, as more pesos are required to purchase these goods in dollars. However, it also means that families of Overseas Filipino Workers (OFWs) receive more pesos for their dollar remittances.
