PESO may trade stronger this week and may even return to the P58 level ahead of the release of Philippine gross domestic product (GDP) growth data.
The local unit closed at P59.09 per dollar on Friday, up seven cents from Thursday's P59.16, data from the Bankers Association of the Philippines showed.
Week to week, the peso jumped 26 centavos from its closing level of P59.35 on January 16.
Rizal Commercial Banking Corp. chief economist Michael L. Ricafort said in a Viber message that US President Donald J. Trade concerns have eased after Trump backed off from his previous threats to impose tariffs on some European countries in a bid to get Greenland to support the local entity.
“The dollar-peso closed lower as demand for the peso increased again following reports of easing tensions between the US and Greenland and President Marcos' willingness not to let the peso reach the P60 level,” a trader said by telephone on Friday.
Last Thursday, Palace press officer Clarissa A. Castro said that President Ferdinand R. Marcos, Jr. expects the peso-dollar exchange rate not to reach P60, but reiterated that the central bank sees no need for market intervention.
On Friday, BSP Governor Eli M. Remolona, Jr. said the central bank would continue to intervene in the foreign exchange market only to reduce sharp fluctuations.
Asked whether the central bank would intervene if the peso reaches P60 against the dollar, he said: “It depends on how it gets there. Just because it's P60 doesn't mean we'll defend it.”
“We just do what we've always done,” Mr. Remolona said. “We try to avoid sharp fluctuations in the peso.”
For this week, the trader said the market's focus will be on the release of fourth-quarter and full-year 2025 Philippine GDP data on Thursday (Jan 29).
A businessworld The survey of 18 economists and analysts yielded an average estimate of 4.2% for fourth-quarter growth. If realized, it would average 4.8% for the full year, below the government's 5.5%-6.5% target.
The trader said players will also be waiting for the release of US economic data this week and the Federal Reserve's policy meeting.
Investors widely expect the Fed to keep rates steady when it delivers a monetary policy decision at the end of its two-day meeting on Wednesday, Reuters reports. Fed funds futures are pricing in at least one more cut this year.
The trader sees the peso rising between P58.90 and P59.30 per dollar this week, while Mr. Ricafort expects it to remain between P58.75 and P59.25. — AMC Sy