The Philippine peso tumbled to an all-time low of 59.2 against the US dollar Tuesday from 58.90 a dollar Monday, reflecting the weakness of regional currencies affected by the US tariff.
Analysts said the peso was depreciating on concerns that the 19-percent
average tariff imposed by the US on Philippine products would hurt its exports in the coming months.
The Bangko Sentral ng Pilipinas (BSP) said the depreciation of the Philippine peso may also be a reflection of market concerns over a potential economic growth moderation partly due to the infrastructure spending controversy and expectations of additional monetary policy easing.
In a statement Tuesday, the BSP said it allows the exchange rate to be determined by market forces.
“When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility,” it said.
The BSP said the peso continues to be supported by resilient remittance inflows, still relatively fast economic growth, low inflation and ongoing structural reforms.
It said the Philippine economy continues to maintain robust reserves, while foreign exchange inflows continue to buffer external shocks.
