Peso rebounds on ‘somewhat hawkish’ BSP hints

The peso on Thursday recovered from its all-time low close as market players digest the latest policy signals from the Bangko Sentral ng Pilipinas (BSP) chief.

The local unit closed at PHP 59.17 versus the greenback, jumping by 18.5 centavos from its record-low PHP 59.355 finish on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session stronger at PHP 59.30 versus the dollar, which was already its worst showing against the greenback. Its intraday best was at PHP 59.01.

Dollars traded increased to USD 1.648 billion from USD 1.317 billion on Wednesday.

The peso was supported by “somewhat hawkish” sentiment from BSP Governor Eli M. Remolona, Jr., Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The dollar-peso ended lower on higher buying interest for the peso as market players gauged the recent statement from the BSP signaling the end of their easing cycle,” a trader likewise said by phone.

On Tuesday, Mr. Remolona said they could consider another rate cut at the Monetary Board’s Feb. 19 meeting but noted that the current policy rate of 4.5% is already “very close” to where they want it to be, signaling that their easing cycle is about to end.

The BSP has cut rates by 200 basis points since August 2024.

For Friday, the trader sees the peso moving between PHP 59 and PHP 59.30 per dollar, while Mr. Ricafort said it could range from PHP 59 to PHP 59.25. — Aaron Michael C. Sy