Peso caps week returning to P58-per-dollar territory

Manila, Philippines – The peso has returned to the P58-per-dollar level during the week amid concerns over the direction of US interest rates, but recouped some losses at the end of Friday’s trade.

The peso depreciated by 1.81 percent from the previous week’s close to 58.145 against the dollar, according to spot market data.

“The USD/PHP pair revisited the 58 level during the week, following Fed chair Jerome Powell’s remarks that no decision had been made on a September rate cut,” BDO’s think tank said in a note to investors.

Powell noted signs of labor market softening and uncertainty over the inflationary impact of recent tariffs, which may pass through more slowly than expected.

“Cautious market sentiment persisted throughout the week, driven by the upcoming August 01 tariff deadline and a shifting US economic outlook,” BDO added.

The peso “faced added pressure from a wider Philippine trade deficit in June, signaling external vulnerabilities,” it said.

Friday’s modest gain was underpinned by signals from the Philippine central bank that it has room to intervene in the currency market.

Business News Anchor Lois Calderon contributed to this story.