Peso slides back to P58:$1 level

The Philippine peso sank back to P58-to-one dollar level on Thursday as the greenback regained its allure amid cautious signals from the US Federal Reserve, which reduced expectations of an interest rate cut.

The local currency closed at P58.32:$1, shedding 74 centavos from Wednesday’s P57.58:$1 finish.

This is the weakest for the peso in nearly six months or since February 4, 2025, when it closed at P58.34 to a dollar.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the US dollar gained traction versus major global currencies “after more cautious signals from the Fed about a possible -0.25 Fed rate cut in September 2025 that reduced the odds of future Fed rate cuts lately.”

The US dollar-to-peso exchange rate also slipped “amid some seasonal increase in importation activities in the third quarter to prepare for the seasonal increase in demand locally and in the exports market in the fourth quarter, when there would be seasonal increase in OFW remittances,” according to Ricafort. — RF, GMA Integrated News