THE Philippine peso regained its footing against the dollar as it surged back to the P57 level for the first time in nearly two months.
The local currency gained 23 centavos to close at P57.83:$1 on Friday, February 14, from Thursday’s finish of P58.06:$1, according to foreign exchange data on the Bankers Association of the Philippines’ website.
This was the first time the peso bounced back to the 57-to-a-dollar level since December 26, 2024, when it finished at P57.97:$1.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort said this was the local unit’s strongest finish since December 6, 2024, when it closed at P57.735:$1.
Ricafort said the peso’s appreciation came after the dollar decline versus other major global currencies following “latest signals from the Trump administration that the proposed reciprocal tariffs could be delayed to around April 2025 and could be negotiated/mitigated on a per country basis.”
The peso was also supported by the Bangko Sentral ng Pilipinas’ (BSP) unexpected move to keep local policy rates unchanged, according to the economist.
The BSP, on February 13, decided to pause on policy easing, citing global uncertainties, especially on trade, after cutting rates in the last three meetings.
In a briefing in Manila, BSP Governor Eli Remolona Jr. said the Monetary Board decided to maintain the target reverse repurchase (RRP) rate at 5.75%, the overnight deposit rate at 5.25%, and the overnight lending facility rate at 6.25%. (GMA Integrated News)
