THE Philippine peso strengthened for the third straight session on Friday, supported by cooler‑than‑expected US inflation data that eased expectations of another interest rate hike by the Federal Reserve.
The local currency appreciated by 3.3 centavos to finish at ₱61.587 against the US dollar, improving from Thursday’s close of ₱61.62:$1.
Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that the dollar softened “amid reduced odds of 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 fell by 0.4% in June, a marked slowdown from the 0.5% increase recorded in May, giving markets confidence that aggressive monetary tightening may be paused.
Additional tailwinds for the peso came from the Bangko Sentral ng Pilipinas’ guidance discouraging speculative foreign exchange derivative trades, as well as recent statements from Malacañang affirming the central bank’s primary mandate to stabilize the currency and curb excessive volatility.
These combined factors have helped steady the exchange rate, reinforcing confidence in the local unit amid global monetary shifts.
metrosundaily
