Metro Manila (CNN Philippines, December 2) — The Philippine peso continued to gain more ground against the greenback, with Friday’s close its strongest since Aug. 12.
Data from the Bankers Association of the Philippines showed the local unit finished at ₱55.74, marking the seventh consecutive day of US dollar rate decline against the peso.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said expectations about the expected surge in remittances sent by overseas Filipino workers before the holidays, coupled with the current administration’s move matching the US Fed’s interest rate hikes, have provided support for the Philippine peso.
“The peso [was] also stronger after the gauge of the US dollar vs. major global/Asian/ASEAN currencies recently eased to the lowest in more than 5 months amid less hawkish Fed signals recently that could lead to smaller Fed rate hikes in the coming months,” he added.
President Ferdinand “Bongbong” Marcos Jr. earlier hinted that economic managers would increase rates to tame the rising inflation and support the peso.
True to this, the central bank delivered a strong policy response in November, jacking up the cost of borrowing by 75 basis points or three-quarters of a percentage point.
For November, the Bangko Sentral ng Pilipinas expects the inflation rate to range between 7.4% to 8.2%.
