Philippine peso closes at P58.27 against US dollar

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The exchange rate of the Philippine peso against the dollar closed at a low level on Tuesday after slipping to P58.27, according to the latest data from the Bankers Association of the Philippines.

This has been the lowest since October 2022, when the rate hit a record-low of P59 against $1.

The latest exchange rate print is also higher than the P57.9 recorded on Monday.

In a statement, the Bangko Sentral ng Pilipinas (BSP) explained that other countries are also experiencing similar situation at present.

Quoting BSP Governor Eli Remolona, the central bank attributed the strengthening of the dollar to the 'signaled delay' of cutting interest rates of the U.S. Federal Reserve.

"The BSP continues to monitor the foreign exchange market but allows the market to function without aiming to protect a certain exchange rate," Remolona was quoted as saying in the press release.

"Nonetheless, the BSP will participate in the market when necessary to smoothen excessive volatility and restore order during periods of stress,' he added.

When the Philippine peso depreciates, overseas Filipino workers can send more money to their families in the Philippines due to favorable exchange rates.

However, this also means that foreign goods and services become more expensive for Filipinos.