Peso strengthens further to P61.47:$1 amid slower May inflation data

The Philippine peso ended the week on a strong note on Friday, supported by optimism following a slower-than-expected inflation rate in May.

The local currency gained 15.5 centavos to close at P61.47:$1 from Thursday’s finish at P61.625:$1.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the stronger peso versus the greenback came after “better-than-expected local inflation data.”

The Philippine Statistics Authority (PSA) reported that inflation — the rate of increase in the prices of goods and services — slowed down to 6.8% last month from 7.2% in April 2026 amid slower increases in fuel costs seen during the period.

Ricafort also attributed the local unit’s strength to Bangko Sentral ng Pilipinas’s (BSP) caution “against using foreign-exchange derivatives transactions to profit from currency volatility.”

“It is worth noting that the peso exchange rate was relatively stable versus the US dollar recently amid possible intervention/smoothening of market volatility at P61.60-P61.70 levels recently; possible BSP rate hike/s, even off-cycle, to help stabilize the peso exchange rate, importation costs, and, in turn, also better manage inflation and inflation expectations,” he said.

Other positive factors for the peso exchange rate include the seasonal increase in OFW remittances and conversion to pesos to finance some tuition payments especially into June 2026 for the new local school year. — BAP, GMA News