Peso drops to P59:$1 level, lowest in 2 years

A woman exchanges Philippine pesos for dollars at a money-changers stall in Manila on November 5, 2010. Philippine President Benigno Aquino and other officials have said the United States' latest economic stimulus measures will take a toll on the Philippine economy, especially its beleaguered export sector, primarily by making the local currency appreciate against the dollar.

MANILA, Philippines — The Philippine peso closed at a two-year low of P59:$1 level on Thursday, November 21.

The latest exchange rate print is nine centavos weaker than the P58.91 closing recorded on Wednesday.

This marks the peso's lowest closing since it last hit P59 against the dollar on Oct. 17, 2022.

Prior to Thursday’s exchange rate, Wednesday’s P58.91 closing marked a 10-centavo gain from the previous P58.81.

According to a Bloomberg report, the recent decline in Asian currencies is due to the US dollar's continued strengthening, which gained momentum following the re-election of Donald Trump.

Investors are bracing for heightened US-China trade tensions and potential tariff hikes.

On Wednesday, Bangko Sentral ng Pilipinas Gov. Eli Remolona said that the central bank might pause further easing of key interest rates due to inflationary pressures.

RELATED: Inflation pressures may prompt BSP to pause’

However, further rate cuts remain possible if economic growth slows significantly.

The BSP’s Monetary Board has reduced the country’s key interest rates by 50 basis points this year, bringing the current rate to 6%.

The first cut of 25 basis points occurred in August, lowering rates from 6.25%, where they had been held since October 2023 to combat inflation. — with reports from Keisha Ta-asan

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