Peso drops to nearly 2-month low amid corruption allegations

The Philippine peso fell to its lowest level in nearly two months, closing at 58.10 against the US dollar on Thursday, influenced by corruption allegations in government flood control projects and political unease.

This marks the peso's worst performance since August 1, 2025, with a depreciation of 63.9 centavos or 1.1% in a single trading day.

A widening corruption scandal involving state flood control projects has weighed on investor sentiment, with Finance Secretary Ralph G. Recto estimating potential economic losses of P118.5 billion since 2023.

The peso's slide pushed it beyond the Marcos administration's assumed exchange rate range of 56 to 58 for the year, a level that underpins fiscal forecasts and budget planning.

The decline was also supported by hawkish signals from the US Federal Reserve, though the new article focuses more on domestic issues.

Trading volume increased to $2.1 billion on Thursday, compared to $1.7 billion the previous day.

Analysts suggest that breaching the 58 level could signal further weakness, with 58.50 and 59 at risk.