Peso strengthens after January inflation spikes

The Philippine peso strengthened against the US dollar on Friday following January's higher-than-expected inflation rate of 4.2%, which raised expectations for potential monetary policy adjustments.

Inflation rose to its highest level since January 2019, surpassing the Bangko Sentral ng Pilipinas (BSP) target range of 2-4% and increasing the likelihood of interest rate hikes.

The peso closed at P48.07 per dollar on Friday, marking its strongest performance in over four years since September 23, 2016.