Peso weakens to P50.9:$1 after BSP rate cut

Updated Fri, April 17, 2020 at 6:40 PM Published Thu, April 16, 2020 at 4:00 PM

The Philippine peso depreciated against the US dollar, closing at P50.9:$1 on Friday, April 17, 2020, down 1 centavo from Thursday's close.

This weakening is attributed to the Bangko Sentral ng Pilipinas (BSP) implementing a larger-than-expected 50 basis point cut in key policy rates.

BSP Governor Benjamin Diokno announced the rate cut, effective April 17, 2020, bringing the overnight reverse repurchase rate to 2.75%, the overnight deposit facility to 2.25%, and the overnight lending facility to 3.25%.

Rizal Commercial Banking Corp. chief economist Michael Ricafort stated that the rate cut reduced the attractiveness of the peso's interest returns.

Despite the depreciation, the peso closed at its highest in over two weeks, since March 30.

Market sentiment is also influenced by anticipation of developments regarding the COVID-19 lockdown, including potential lifting after April 30.

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Bangko Sentral ng Pilipinas Benjamin Diokno RCBC Michael Ricafort

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