The Philippine peso weakened further against the US dollar on Thursday, closing at P59:$1. This marks the third consecutive day of depreciation and matches its lowest level last seen in October 2022. The currency fell by 9 centavos from Wednesday’s close of P58.91:$1.
The peso’s decline reflects the US dollar’s rally, supported by rising US Treasury yields and the 10-year bond yield reaching 4.39%, its highest in nearly five months. Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort also cited geopolitical tensions, including Ukraine’s missile strike on Russia, as a contributing factor.
Ricafort noted the peso may find some relief from falling global crude oil prices, now at near three-year lows. Lower oil prices could help manage inflation, which stood at 2.3% in October, well within the central bank’s target of 2% to 4%.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the central bank is monitoring the currency but remains focused on managing inflation rather than intervening in daily exchange rate fluctuations. “If the depreciation isn’t sharp or sustained, we don’t intervene,” he said.
Meanwhile, the Philippine Stock Exchange Index (PSEi) dropped by 112.62 points or 1.61% to 6,863.01, with the broader All Shares index down by 0.99%. Analysts attributed the decline to profit-taking after recent gains and reassurances from the BSP.
