Peso returns to P57 level as data back Fed easing bets

THE PESO returned to P57-per-dollar level on Monday as softer-than-expected US inflation data supported expectations of more rate cuts by the US Federal Reserve.

The local unit rose by 3.4 centavos to close at P57.986 versus the greenback from its P58.02 finish on Friday, data from the Bankers Association of the Philippines showed.

This was the peso’s best finish in more than four months or since it closed at P57.95 on Oct. 8, 2025, which was also the last time it closed at the P57 level.

The local currency opened Monday’s trading session stronger at P57.95 against the dollar. Its intraday low was at P58.02, while its best showing was at P57.91 against the greenback.

Dollars traded fell to $896.5 million from $1.338 billion on Friday.

“The dollar-peso traded lower on broad dollar weakness amid renewed Fed cut bets after the release of cooler than expected US inflation,” a trader said in a phone interview.

Data on Friday showed US consumer prices increased less than expected in January, giving the Fed additional leeway for policy easing, Reuters reported. Futures imply 62 basis points of easing over the rest of this year. The next cut is likely in June, with markets assigning 68% odds to a reduction.

The US dollar index, which measures the currency against six major peers, was steady at 96.973 after dropping 0.8% last week.

The peso strengthened along with other regional currencies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. 

Philippine financial markets are closed on Tuesday (Feb. 17) for the Lunar New Year holiday.

For Wednesday, the trader sees the peso moving between P57.80 and P58.10 per dollar, while Mr. Ricafort expects it to range from P57.05 to P58.05. — Aaron Michael C. Sy