On Friday, the Philippine peso rose slightly against the US dollar after the local currency closed trading at P58.625.
Data from the Philippine Bankers Association showed that the peso opened at P58.6, stronger than Thursday’s opening of P58.87.
The local currency traded between P58.53 and P58.79, resulting in a weighted average of P58.646.
Similarly, the Philippine peso gained 34.5 centavos from Thursday’s ending at P58.97.
Trading volume increased to $1.05,835 from $902.86 million the day before.
Michael Rycafort, chief economist at Rizal Commercial Banking Corp, attributed the downward correction in the US dollar against global currencies to the Bank of England’s intervention in the UK government debt market through the purchase of long-term bonds.
The Bank of England made an emergency intervention last Wednesday. It said it would “buy” the necessary government debt to restore financial stability in the region.
However, Rycafort noted that the local currency is still depreciating by a total of 7.97 pesos, or 15.6 percent, since the beginning of 2022 compared to 50.999 at the end of 2021. The economist also said that the dollar’s rise is fueling the weakening of the peso and other major currencies in Asia. .
Meanwhile, another economist predicted that the peso would fall much more by the end of this year.
Jonathan Ravelas, managing director of eManagement for Business and Marketing Services, said in an interview with “The Chiefs” on One News earlier this week that the local currency is expected to reach record lows from P61.80 to P61.90. Roughly per dollar.
“In the near term, which is probably between now and the end of the year, we’ll probably get to 61.80 to 61.90 before we finally get some adjustments,” he said.
To mitigate the depreciation of the local currency in the fourth quarter, Rafaelas is relying on remittances from overseas Filipino workers (OFWs). Workers in the Philippines usually send more money to loved ones in the last quarter of the year for the Christmas holidays.