Peso cools back to P58:$1 level after BSP rate cut

The Philippine peso regained its footing against the greenback on Thursday, returning to P58-to-a dollar level as the central bank’s latest hawkish signal provided support for the local currency.

The peso gained 22 centavos to close at P58.99:$1 from P59.21:$1 on Wednesday—a centavo shy of the local unit’s weakest exchange rate against the US dollar in history at P59.22:$1 seen last Tuesday.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso’s “correction” came “largely after BSP Governor [Eli] Remolona gave hawkish signals that the latest and widely expected -0.25 BSP rate cut on December 11, 2025 could be the last, depending on economic data, thereby partly supporting the stronger peso versus the US dollar.”

The Monetary Board, the Bangko Sentral ng Pilipinas’ policy-setting body, delivered its fifth straight monetary easing with a 25-basis-point cut, with BSP chief Remolona signaling that “the monetary easing cycle is nearing its end.”

The peso was also supported by the market’s anticipation of the seasonal increase in OFW remittances and conversion to pesos for the rest of December 2025, in time of the Christmas holiday spending season, according to Ricafort.

“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, or about eight days after, lower by more than P1.155, at P57.845:$1 in end-2024 (posted during the last trading date of last year, on December 27, 2024), thereby highlighting the importance of OFW remittances and conversion to pesos in terms of supporting the peso exchange rate versus the US dollar during the peak Christmas holiday spending season,” the economist said. — BM, GMA Integrated News