MANILA (Bloomberg): The weakness in the Philippine peso is caused by a strong dollar, the central bank said, a day after the local currency fell to a record low.
"The recent depreciation of the peso against the dollar is about a strong US dollar story due to the rising geopolitical tensions,” Bangko Sentral ng Pilipinas said in a mobile-phone message on Friday.
"The peso traded in line with the regional currencies we benchmark against.”
The currency slipped to the record-low 59 against the dollar on Thursday. It recovered on Friday to rise 0.3% to 58.84, outperforming emerging Asian peers.
Asian currencies have fallen this month as Donald Trump’s election win fueled a rally in the greenback, with the Indian rupee also near a record low.
Traders are assessing the BSP’s tolerance for a weak currency, as the 59 level has served as a key support for the peso since 2022.
-- ©2024 Bloomberg L.P.
