The Philippine peso depreciated toward 55 per dollar, sinking further to its lowest levels since 2005, as markets feared a modest rate hike by the country’s central bank may not be enough to curb surging inflation, at a time other major economies are aggressively raising interest rates. The Bangko Sentral ng Pilipinas stuck to a 25 basis point rate increase for a second month in a row at its June meeting, in line with forecasts as the central bank feared that more aggressive tightening could compromise growth. The move defied expectations from some analysts of a larger 50 basis point rate hike, citing pressure from high inflation and stronger-than-expected GDP data. The peso was also being weighed down by a more hawkish Fed, which raised interest rates by 75 basis points in June, and a widening Philippine trade deficit.
Historically, the Philippine Peso reached an all time high of 56.56 in October of 2004. Philippine Peso - data, forecasts, historical chart - was last updated on June of 2022.
The Philippine Peso is expected to trade at 54.23 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 55.69 in 12 months time.