Peso again opens stronger at P63.67 vs dollar

MANILA — The peso again opened stronger at P63.67 against the dollar on Friday, October 30, after closing at P63.85 the day before.

On October 29, the peso opened at P63.88 versus the greenback.

The peso closed at a record low of P64.17 against the dollar on October 27.

The Bangko Sentral ng Pilipinas raised key interest rates by 50 basis points last week, but Governor Eli Remolona said the central bank was not trying to arrest the depreciation of the peso, as doing so would impact the country’s foreign exchange reserves. 

President Ferdinand Marcos Jr. has also said that the government had “all the means” to continue defending the peso, including “healthy” foreign exchange reserves.

The central bank, however, has been known to intervene in the market by selling dollars to temper sharp fluctuations in the exchange rate.

A weaker peso is expected to make oil purchases even more expensive as the commodity is purchased with dollars. It is also expected to stoke inflation.

Asked about how the government plans to address the rising cost of goods and services, the President said that the country’s inflation was supply-driven and that “monetary measures can only go so far.”