Peso stays at P59:$1 level

The Philippine peso held its ground at the P59-to-$1 level on Wednesday amid expectations of upcoming interest rate cuts from both the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve.

The local currency closed at P59.21:$1, slightly stronger than Tuesday’s finish of P59.22:$1 — still the peso’s weakest level on record.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the movement came “ahead of the widely expected -0.25 Fed rate cut on December 10, 2025 and also ahead of the widely expected -0.25 BSP rate cut on December 11, 2025.”

Ricafort added that the peso’s slight improvement was also supported by President Ferdinand Marcos Jr.’s appeal for Congress to prioritize key reform measures, including the Anti-Dynasty bill and the Independent People’s Commission law.

He noted that the onset of Christmas-related spending, fueled by the seasonal surge in overseas Filipino workers’ US dollar remittances and subsequent conversion to pesos, typically boosts the local currency.

“For instance, in 2024, the US dollar–peso exchange rate posted the previous record high of P59:$1 on December 19, 2024 partly due to the Trump factor back then, but ended 2024 lower by more than P1.155 at P57.845 on December 27, 2024," Ricafort said.

"This highlights the importance of OFW remittances and conversion to pesos in supporting the peso during the peak Christmas holiday spending season,” he added.—MCG, GMA Integrated News