📷 HiClipart
Bangko Sentral ng Pilipinas said it will intervene in the foreign exchange market as needed to mitigate excessive volatility as the Philippine Peso further weakened against the US Dollar.
Data from the Bankers Association of the Philippines showed that the Philippine peso weakened to P59.27 per U.S. dollar earlier on Tuesday, joining other Asian peers in retreating against the dollar.
In an emailed statement, BSP Governor Eli Remolona said that the dollar continued to gain strength against other currencies after the Federal Reserve indicated a delayed in lowering interest rates.
Fed officials previously said that they will not consider a rate cut until inflation reaches their 2-percent target.
Additionally, the peso’s decline against the dollar came after his statement last week that the central bank might reduce rates as soon as August.
“The BSP will participate in the market when necessary to smoothen excessive volatility and restore order during periods of stress,” Remolona said.
Last week, the central bank maintained its benchmark rate at 6.50% for the fifth consecutive meeting, which was in line with market expectations.
In late 2022, the Philippine government pledged to take strong measures to prevent the peso from falling below P60 per dollar. The currency has since dropped over 3% this quarter, making it the worst performer among emerging markets after the Argentine peso. (TCSP)
