Peso extends recovery, ends at P61.62 per dollar

The Philippine peso continued its recovery against the US dollar for the second straight day on Thursday, driven by cooler US inflation.

The local currency gained 6.6 centavos to close at P61.62:$1 from Wednesday’s finish of P61.686:$1.

“The US dollar versus major global currencies corrected slightly lower recently to near one-month lows or since June 18, 2026, after the better-than-expected inflation data that reduced the odds of a possible +0.25 Fed rate hike to December 2026,” Rizal Commercial Banking Corp. chief Michael Ricafort.

The US Bureau of Labor Statistics reported that the consumer price index decreased by 0.4% in June, down from 0.5% in May.

“The US dollar-peso exchange rate again slightly lower, also after Brent crude oil price slightly lower at $84 per barrel levels (versus the previous trading day’s $86),” Ricafort said.

The economist noted that the peso exchange rate was relatively stable versus the US dollar recently amid possible intervention of market volatility at P61.60-P61.70 range highs recently.

Also supporting the local unit was a possible future BSP rate hike, especially on the next rate-setting meeting on August 27, 2026 to help stabilize the peso exchange rate, importation costs, and, in turn, also better manage inflation and inflation expectations, according to Ricafort. —LDF, GMA News