The Philippine peso weakened to a near two-year high against the greenback on Tuesday, but Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. signaled the central bank remains comfortable with the depreciation, which aligns with regional trends.
The peso touched an intraday high of 58.2 per dollar, the weakest since July 2022, before paring some losses.
Remolona acknowledged the peso’s dip but downplayed concerns, attributing it to a broader trend in Asia as the Federal Reserve’s hawkish tilt bolstered the dollar.
The BSP chief reiterated the central bank’s commitment to a market-driven exchange rate, prioritizing orderly market functioning over defending a specific level.
However, he emphasized the BSP’s readiness to intervene if excessive volatility threatens financial stability.
Remolona’s comments echo recent statements downplaying the need for aggressive intervention.
