Peso slumps to new all-time low

THE PHILIPPINE PESO breached the P59-per-dollar level for the first time on Tuesday, amid market concerns of slowing economic growth and expectations of further monetary easing.

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At the same time, the Bangko Sentral ng Pilipinas (BSP) said it will allow market forces to determine the peso-dollar exchange rate.

The local unit closed at P59.13 versus the greenback, sinking by 23 centavos from its P58.90 finish on Monday, Bankers Association of the Philippines data showed.

This was a new all-time low for the peso, eclipsing the previous record of P59 logged on Dec. 19, 2024.

Year to date, the peso has depreciated by P1.285 or 2.17% from its P57.845 finish on Dec. 27, 2024.

The peso opened Tuesday’s session steady at P58.90 versus the dollar, which was already its intraday best. Its worst showing was at P59.20 against the greenback.

Dollars exchanged rose to $1.75 billion on Tuesday from $1.6 billion on Monday.

“The recent peso depreciation may reflect market concerns over a potential moderation in economic growth due in part to the infrastructure spending controversy, as well as expectations of additional monetary policy easing by the BSP,” the central bank said.