Peso slides to P58.65:$1, still at 19-month low

The Philippine peso ended the week on a soft note against the US dollar on Friday, remaining within its 19-month low range, as the greenback found support from the US Federal Reserve’s signal of lesser rate cuts this year.

The local unit shed 7 centavos to close at P58.65:$1, from Thursday’s finish of P58.58:$1.

According to Rizal Commercial Banking Corp. chief economist Michael Ricafort, Friday’s close is still among the peso’s weakest in over 19 months or since November 3, 2002’s finish of P58.80:$1.

The local currency’s weakness was attributed to the Fed’s latest “dot plot” or its policymakers’ forecast on where interest rates would be headed.

Ricafort said the US dollar gained ground against major global currencies after the Fed’s “dot plot” showed only one estimated rate cut for 2024, versus the previous expectation of three rate cuts.

The Bangko Sentral ng Pilipinas earlier said the peso’s weakness was only temporary as the dollar is supported by developments

BSP Governor Eli Remolona Jr., nevertheless, said the central bank intervenes in the foreign exchange market when it is “under stress” or when it finds some “dysfunction in the market.”—AOL, GMA Integrated News