MANILA, Philippines — The Bangko Sentral ng Pilipinas said it is ready to manage any “excessive” weakness of the peso, which has fallen to 17-month lows.
In a statement, BSP Governor Eli Remolona Jr. said the peso’s weakness stemmed from a strengthening dollar, as geopolitical risks and diverging US rate outlook stoke capital flight to safety.
”The story has been one of dollar strength rather than peso weakness. Escalating tensions in the Middle East led to safe-haven flows into the US dollar at the expense of most other currencies,” Remolona said.
READ: Peso sinks to 17-month low vs dollar
”Nonetheless, the BSP continues to monitor the market and stands ready to manage any unnecessary movement and excessive volatility,” he added.
On Thursday, the peso closed at 57.78 per dollar, a new 17-month low.