The Philippine peso strengthened nearly 1% to around 57.5 per dollar on February 23, its highest level in five months, outperforming most regional currencies as the US dollar broadly weakened amid renewed uncertainty over US trade policy. On Saturday, US President Donald Trump said he would increase the newly announced 10% global tariff to 15%, following the US Supreme Court’s decision to strike down his earlier package of sweeping reciprocal levies.
The peso also benefitted from stronger capital inflows, with the benchmark PSE Index advancing toward its highest level in more than a year as worries over large-scale government corruption eased. Last week, the Bangko Sentral ng Pilipinas implemented its sixth consecutive interest rate cut to support an economy strained by the corruption scandal, though policymakers are now widely expected to keep rates on hold for the rest of the year.
At the same time, local companies are reportedly intensifying efforts to manage foreign-exchange exposure, adopting more active currency hedging strategies in response to increased peso volatility.
