THE Philippine peso continued its downward trend, depreciating for the fourth consecutive trading day to reach a new all-time low against the U.S. dollar on Monday. The local currency closed at P59.87 to $1, shedding 13.5 centavos and surpassing its previous record low of P59.735 to $1 set on March 13, 2026. During trading, the peso also touched an intraday low of P59.95 to $1.
This significant depreciation is attributed to the strengthening U.S. dollar, which has reached its highest level in nearly 10 months, driven by reduced expectations of future Federal Reserve interest rate cuts. Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that markets are now pricing in only one -0.25 Fed rate cut in 2026, a decrease from the previously anticipated two, especially after the conflict in Iran/Middle East began on February 28, 2026. The Federal Reserve Open Market Committee is set to convene on March 17 and 18 to discuss its policy settings.
Despite the downward pressure, interventions by the Bangko Sentral ng Pilipinas (BSP) helped temper the peso’s decline. BSP Governor Eli Remolona Jr. confirmed that such interventions were undertaken. “Since the dollar is down, I assume some intervention can push the peso back down below 60,” Remolona was quoted as saying in a Bloomberg report. This intervention aims to manage the peso’s volatility and mitigate its impact on the country’s economy.
The weakening peso raises concerns, particularly regarding its effect on the country’s debt, as President Ferdinand “Bongbong” Marcos Jr. has previously expressed a desire to avoid the peso falling to the P60:$1 level. A local bank trader anticipates that the peso may trade within the range of P59.70 to P59.95 against the dollar in the coming days, indicating continued volatility in the currency market.
metrosundaily
