The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, attributed the recent record low of the Philippine peso to the strength of the US dollar and rising geopolitical tensions, Bloomberg reports.
The statement came a day after the peso hit an all-time low of 59 against the dollar on Thursday.
In a statement released Friday, the BSP clarified that the peso’s depreciation was largely a reflection of the broader global trend of a strengthening US dollar. The central bank emphasized that the peso’s performance mirrored that of other regional currencies used as benchmarks.
The peso showed some resilience on Friday, recovering slightly to 58.84 against the dollar – a 0.3% increase – outperforming other emerging Asian currencies. However, the record low remains a significant event.
The recent decline in Asian currencies, including the Philippine peso and the Indian rupee (which is also near a record low), has been linked to the surge in the US dollar following Donald Trump’s electoral victory. Market observers are now closely watching the BSP’s response, particularly given the peso’s support level at 59, a significant threshold maintained since 2022.
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