The Philippine peso weakened toward 58 against the dollar, sinking to a new record low as an expected 50 basis point interest rate hike from the Bangko Sentral ng Pilipinas at its September meeting is seen as insufficient in alleviating downward pressure on the currency. This has led to further capital outflows, with foregin investors pulling out of Philippine equities at an accelerated pace in recent sessions. Expectations that the US Federal Reserve will remain aggressive in fighting inflation and solid US economic data also boosted the dollar’s appeal at the expense of other currencies. Meanwhile, the BSP acknowledged the peso’s rapid declines ahead of its policy meeting, but underscored that it does not set a target exchange rate.
Historically, the Philippine Peso reached an all time high of 59.09 in September of 2022. Philippine Peso - data, forecasts, historical chart - was last updated on September of 2022.
The Philippine Peso is expected to trade at 59.22 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 60.69 in 12 months time.