Peso ends 1st week of March on strong note

The Philippine peso finished the first week of March on a strong note against the US dollar amid a slew of global and local developments that supported the local unit.

The local currency gained 11.4 centavos against the greenback to close at P57.206:$1 on Friday, from Thursday’s finish of P57.32:$1.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened against the dollar for the fifth straight trading day and also closed at its “best in nearly five months or since October 11, 202r, when it closed at 57.205.”

Ricafort said the US dollar declined versus other Asian currencies recently, including the peso, “after Trump delayed the 25% tariff on Canadian and Mexican goods and services that are covered by the North American Free Trade Agreement or USMCA until April 2, 2025, when Trump plans reciprocal tariffs.”

The economist also cited the growth in universal and commercial bank loans growth at its fastest in two years.

Preliminary central bank data showed that outstanding loans of universal and commercial banks, net of reverse repurchase (RRP) placements with the BSP, rose 12.8% in the very first month of the year to P13.019 trillion from P11.54 trillion in January 2024.

“Furthermore, softer/better inflation data tends to fundamentally support the peso exchange rate with more purchasing power for the local currency,” he said.

The country’s inflation rate slowed down in February 2025 to 2.1% from 2.99% month-on-month amid the easing of growth in food and utilities costs, the Philippine Statistics Authority (PSA) reported. –NB, GMA Integrated News