Peso extends win streak for third day

The Philippine peso sustained its rally against the dollar for the third consecutive day on Friday, still due to softer US inflation print which reduced the possibility of a Fed rate hike.

The local currency gained 3.3 centavos to close at P61.587:$1 from Thursday's finish at P61.62:$1.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the greenback's weakness was "amid reduced odds of future a possible +0.25 Fed rate hike by December 2026 after mostly softer US economic data lately."

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

Other positive factors for the peso include the Bangko Sentral ng Pilipinas' (BSP) caution against using foreign exchange derivatives transactions to profit from currency volatility, according to Ricafort.

The economist also cited "recent signals from Malacañang that the BSP remains the primary institution mandated to stabilize the peso and manage excessive volatility in the foreign exchange market." — VDV, GMA News