Peso strengthens past P50/dollar after BSP easing

The Philippine peso strengthened past P50 to the dollar level on Friday, closing at P49.92:$1.

This appreciation was driven by the Bangko Sentral ng Pilipinas (BSP) cutting interest rates by 50 basis points to a new record low of 2.25%, citing stable inflation outlook moving forward.

The BSP’s move boosted market sentiment, with dollar volume falling to $738.2 million from $848.93 million on Thursday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted that the peso exchange rate closed at its strongest in more than two weeks after the surprise cut in local policy rates.