Peso rebounds to P63.85:$1 after two days above 64 level

The Philippine peso strengthened against the US dollar on Thursday, returning to the P63-per-dollar level after President Ferdinand “Bongbong” Marcos Jr. said the government was working to prevent the local currency from weakening further.

The peso gained 17.5 centavos to close at P63.85:$1 from P64.025:$1 on Wednesday.

The peso opened stronger at P63.88 against the US dollar on Thursday, after trading at around the P64-per-dollar level for two consecutive days.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso’s recovery was brought by “signals of reassurance on the peso exchange rate by President Marcos.”

On Wednesday, Marcos sought to allay concerns after the peso hit a new record low against the US dollar.

“Well, first of all, do not take it with alarm. Don't panic,” Marcos said in an ambush interview at the New Bilibid Prison in Muntinlupa City for the observance of the 32nd National Correctional Consciousness Week.

The President said his administration was defending the peso “as hard as we possibly can.”

“People can take solace in the fact that our policy towards the peso is to continue to defend the peso as hard as we possibly can. We have all the tools to defend the peso. We have all the means to defend the peso,” Marcos said.

Ricafort also cited “slightly lower global crude oil prices amid new diplomatic efforts on the US-Iran war.”

Economists said a weaker peso could benefit dollar earners, including overseas Filipino worker (OFW) families, exporters, business process outsourcing (BPO) firms, and tourism-related businesses. However, it could also raise import costs, potentially driving up inflation in a country heavily dependent on imported goods. — VBL, GMA News