The Philippine peso rebounded on Wednesday, returning to the P58 level at P58.69 against the US dollar after briefly touching a record low of P59 earlier in the week, as profit-taking and seasonal remittance inflows helped boost the local currency.
Data from the Bankers Association of the Philippines showed that the peso opened at P59.15, traded as high as P59.25 and as low as P58.65, before settling stronger by day’s end.
Economists attributed the rebound to technical factors and market adjustments. Sarah Tan, economist at Moody’s Analytics, said the recovery “looks like a technical rebound as some investors used the weaker level to sell dollars.”
In a Business Mirror report, Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso’s earlier slide to the P59 mark likely triggered “profit-taking or stop-loss orders” as a natural check against speculation.
Sun Life Investment Management and Trust Corp. President Mike Enriquez noted that part of the correction came from foreign investors converting dollars to pesos for local transactions, including payments for the Maynilad IPO.
“We also expect remittances from overseas Filipino workers (OFWs) to help stabilize the Philippine peso toward December,” Enriquez said.
Economists also pointed to seasonal dollar inflows ahead of the Undas holidays and Christmas spending as a stabilizing factor. Ricafort said the weaker peso made conversions more attractive to OFWs and dollar earners preparing for holiday expenses.
Bank of the Philippine Islands lead economist Jun Neri added that while recent depreciation was driven by rising oil prices, foreign selling in local equities, and a dovish central bank stance, the Bangko Sentral ng Pilipinas (BSP) may view the current exchange rate as “tolerable.”
“It might not be a concern from their perspective as long as the inflation forecast for the next two years remains within target,” Neri said, adding that a slightly weaker peso could even support household spending through remittance gains.
Analysts said further appreciation will depend on BSP’s market intervention and the strength of year-end remittance inflows, which traditionally pick up toward December.
