towards Aaron Michael C. Sy, Reporting
The peso can slide on it The P60-per-dollar rate between the central bank and the market problems due to fraud problems, the analyst said.
On Wednesday, the local unit closed at P58.69 against the greenback, recovering 44 cents from the previous day’s record low of P59.13, the Bankers Association of the Philippines data shown.
“P60 (per dollar) is possible, but not a deal. The Bangko Sentral ng Pilipinas (BSP) has a fire extinguisher to protect the peso, and tacandong & senior adviser Jonathan L. RavelAs said in a viber message.
Mufg Global Markets Research said it documented on Wednesday that the depreciation of the peso was much greater than expected.
“While we are already waiting for some results to the PHP (Philippine Peso) from the BSP for DOVISH, which is related to the fraud problems from the flood control projects,” said Mufg.
“We were expecting something elseSetting positives such as low inflation, strong investments including renewable energy projects, expected FDI (Foreign Direct Investment) from the previous approval of FDI approval, accompanied by periodic payments from PHP. Admittedly, this has not happened yet,” he added.
Bank of The Philippine Islands is headed by Emilio S. Neri, Jr.
Mr. Neri said that the BSP may continue to allow the peso to suffer as inflation expectations remain below the target.
“Also, allowing the peso to weaken can be a systemic benefit because a weak peso can support the impact of growth and spending from its family in the payment areas. Central bank officials indicate that the market growth of the bank is very important,” he said.
The BSP said in a statement on Tuesday that it will not intervene in the foreign exchange market to clear the day-to-day of its exchange rate and will focus on reducing the peso’s impact on inflation.
“Expect the BSP to act decisively if global shocks worsen or volatility spikes,” said Mr. Ravelas.
The peso opened Wednesday’s session at P59.15 against the Dollar. Its best intraday was P58.65, while its worst showing was P59.26 – an intraday all-time low against the Greenback.
Dollars exchanged rose to $2.01 billion on Wednesday from $1.75 billion on Tuesday.
“The peso is valued as market participants take profits from (the collapse)
The US Federal Reserve is expected to cut interest rates by a quarter of a percentage point to the 3.75%-4% level on Wednesday.
RIMAL Commerce Banking Corp. Economist Economist HikaEL L. Ricafort said in a Viber message that the Peso was also supported by overseas remittances (Ofws) from their leading families.
“This is followed by the start of the currency related to the Christmas holiday, thus making it more attractive for some who pay and some who earn US dollars to convert their US dollars into higher pesos,” he added.
As of Thursday, Mr. Ricafort sees the peso moving between P58.45 and P58.80 per dollar, while the trader sees it ranging from P58.60 to P58.85.
Meanwhile, Regina Capital Development Corp. Head of Marketing Luis A. Limilinghan said that Viber’s long-suspected message of the Peso could prompt more caution due to its possible inflationary impact.
“Imported fuel, food, and construction materials get bigger, and those costs tend to feed inflation after a few months. There is no continuing weak peso,” he said.
Monetary Board member and former BSP Governor Governor Benjamin E. Diokno said the Central Bank may reduce its prime interest rate in December and again in 2026 to eliminate fraudulent deductions caused by the development of corruption and trade uncertainty.
The BSP earlier this month lowered the lending rate by 25 basis points (BPS) to 4.75%. It has cut rates by 175 bps since it began reducing its capacity in August 2024.
Mr. Limilingnin said that the persistent strength of the US due to the strong US economy could keep the peso under pressure despite its weakness.
“Unless the US data is soft, the peso could remain under pressure,” he said.
Mr.
“Import heavy industries, manufacturing, shops, and companies that have exposure to debts organized in other countries will feel the slope from all those who bring more costs in terms of PESO,” he said.
Meanwhile, export-related industries, BPSs (Business Process Outsourcing), and OfWS will benefit from the depreciation of the peso.
One trader said in an email that heavy consumer companies could be hit, as well as companies that import oil and are heavily exposed to dollar-denominated debt.
The trader said that banks could see improved trading benefits if they could take advantage of foreign exchange transactions.
A weak peso is also beneficial for the real estate sector as this can lower foreign property prices, a trader said.
