Peso weakens after BSP cuts rates
The Philippine peso weakened against the US dollar on Thursday and Friday following an off-cycle interest rate cut by the Bangko Sentral ng Pilipinas (BSP).
On Thursday, the peso closed at P50.80 per dollar, down from P50.62 on Wednesday.
Expectations of deeper rate cuts contributed to the weakening of the peso, with traders anticipating a reduction in the local reserve requirement ratio.
The BSP announced a 50 basis point cut in key policy rates effective Friday, April 17, bringing the overnight reverse repurchase rate to 2.75%, the overnight deposit facility to 2.25%, and the overnight lending facility to 3.25%.
This move aims to provide stimulus amid economic challenges due to the COVID-19 pandemic.
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