Peso sinks back to P58:$1 level amid flood control project fiasco

The Philippine peso depreciated against the US dollar for the third straight trading day on Thursday, marking its weakest showing in seven weeks, following the controversies on corruption involving government flood control projects, and the recent onslaught of Super Typhoon Nando (international name: Ragasa).

The local currency shed 63.9 centavos or 1.1% to close at P58.10:$1 from Wednesday’s finish of P57.461:$1. This is the worst performance of the peso since August 1, 2025, when it closed at P58.145:$1.

Thursday’s depreciation comes amid concerns over government flood control projects, which are currently being investigated by both Chambers of Congress, cited by Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort.

“The US dollar/peso exchange rate went up… after recent political noises on corruption allegations that could also expand to other infrastructure projects other than the controversial/anomalous flood control projects, thereby could slow down infrastructure spending, government spending, and overall local economic / gross domestic product (GDP) growth,” he said in a mobile message.

The latest Senate hearing had Orly Regala Guteza, a man who identified himself as a former security consultant for Ako Bicol Party-list Representative Elizaldy Co, claiming that he personally delivered luggage of money to the residences of Co and former House Speaker Leyte Representative Martin Romualdez.

The issue is also being looked into by the Independent Commission for Infrastructure (ICI), formed by the government to conduct its own investigation on the irregularities in infrastructure projects, and ensure accountability in the use of public funds.

The commission is chaired by former Supreme Court Justice Andres Bernal Reyes Jr., and counts as members for Public Works and Highways Secretary Rogelio “Babes” Singson, and SGV and Co. country managing partner Rossana Fajardo. It will also have Baguio City Mayor Benjamin Magalong as special adviser.

Ricafort also cited the possible impact of Super Typhoon Nando, which forced thousands of families to evacuate before it left the Philippine Area of Responsibility (PAR) on Tuesday, September 23.

“The recent strongest storm in the world so far this year that hit the country recently could lead to some damage and adverse impact on the economy and inflation,” he said.

The exchange rate also inched higher after the gauge of the US dollar against major global currencies and the 10-year US Treasury yields hovered close to three-week highs, amid hawkish signals from officials of the US Federal Reserve.

Philippine equities also closed Thursday in the red, with the local stock barometer PSEi down by 66.44 points or 1.09% to 6,094.28, and the broader All Shares index down by 28.79 points or 0.78% to 3,653.50.

“The market continued to decline today, with selling pressure dominating and no green candles seen throughout the week,” Regina Capital Development Corp. head of sales Luis Limlingan said in a separate mobile message.

“Additionally, the deprecation of the PHP against the USD, with USD/PHP hitting the P58:$1 mark, is weighing on investor sentiment toward Philippine equities,” he added.

A total of 2.608 billion shares, valued at P6.974 billion, changed hands. Declines led advancers, 134 to 64, while 50 issues were unchanged. — BM, GMA Integrated News