The Philippine peso depreciated back above the 54:$1 level after two consecutive days below this threshold as the foreign exchange market corrected even if the US dollar was seen as pointed toward a path to weaker positions.
The peso lost 71 centavos to the greenback and closed at 54.39:$1 on Feb. 6, which was still stronger than the 54.475:$1 on Feb. 1, the last time it was above 54:$1.
The local currency started the trading day already above that threshold, opening at 54.15:$1. Monday’s trading ranged at 54.12 to 54.47, with $1.05 billion changing hands.
“The US dollar/peso exchange rate corrected higher, considered a healthy correction, after declining for three straight days,” said Michael Ricafort, chief economist at the Rizal Commercial Banking Corp.
Even then, Ricafort said the latest trading result was still significantly improved from the record-high closing rate of 59.00 posted on Oct 3, 10, 13, and 17 in 2022.
He said the US dollar firmed up with stronger-than-expected US employment data and services data for the month of January 2023.
Still, a US dollar is now worth P1.365 less than the P55.755 recorded at the end of 2022 — a 2.4-percent appreciation for the peso.
“The peso exchange rate generally appreciated against the US currency in recent weeks as global crude oil eased to near one-month low…or even lower than the levels compared to the start of the [Russian invasion of Ukraine] on Feb. 24, 2022,” Ricafort said.