MANILA, PHILIPPINES — On November 9, Wednesday, the Philippine peso regained enough value to rise past Php 58 and go to Php 57.99 against the US dollar. The Philippine peso ended Wednesday’s trading on a strong note.
On Wednesday, the Philippine peso slightly improved by Php 0.285 to close at Php 57.99 versus the previous Php 58.275.
It was also strong on Tuesday, with an intraday level of Php 58.22, where it appreciated upwards to Php 57.9.
The latest figure nears the Php 57.97:USD 1 exchange rate noted on October 28, the last time the peso closed stronger against the dollar.
Previously, the peso broke the Php 59 level five times in September and October; thankfully, the peso did not depreciate further past this level. This was despite the best efforts of the BSP (Bangko Sentral ng Pilipinas) since July, and the even more intense actions in September, to intervene in the spot market.
BSP Stabilization efforts through US dollar reserves
To stabilize exchange rate trading, BSP Governor Felipe M. Medalla has had to calm the markets. He assured traders and investors that the Monetary Board, which he chairs, will match US Federal Reserve rate hikes until the country’s inflation environment returns to manageable levels.
On November 4, Friday, Medalla said that he would not “draw a line in the sand” as far as the peso level is concerned but would continue to support the exchange rate with BSP’s US dollar reserves. According to him, the BSP is managing the local currency and inflation, two critical issues needed to support growth amid recent volatility and price pressures.
To this day, the peso’s lowest rate is still Php 59, which it touched on September 29, 2022, for the first time. The peso has weakened against the dollar by Php 6.99, or 13.7 percent, since the start of 2022. – WhatALife!/Zed