Peso breaches ₧59 level on market woes By Reine Juvierre S. Alberto
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WORLD » A6
CHINA, ASEAN STRENGTHEN TRADE RELATIONS AMID TRUMP’S TARIFFS AND SOUTH CHINA SEA TENSIONS
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ARKET jitters over the government’s infrastructure spending controversy and expectations of monetary easing by the Bangko Sentral ng Pilipinas (BSP) have weighed on the peso, which breached the P59 level on Tuesday. In a statement, the BSP said the recent peso weakness likely mirrors market concerns over a possible slowdown in economic growth— partly linked to the infrastructure spending controversy and expectations of a rate cut by the BSP. The peso is now at its weakest in more than 10 months, and it
matches its lowest level in over three years, since September 2022, when the exchange rate first hit P59 per dollar. This comes after the peso traded at its highest at P59.2 and at its lowest at P58.9 on Thursday. It opened at P58.9 to the greenback and closed at P59.13, based on the data from the Bankers Association of the Philippines.
Speculation ‘a big part’
BDO Unibank, Inc. Executive Vice President and Head of Institutional Banking Charles M. Rodriguez told BusinessMirror that the recent weakening of the peso is speculative—that is, when traders and investors are betting on short-term
movements for the possibility of substantial gains. “There’s some fundamental concerns, but I think a big part of it is speculative also,” Rodriguez said. However, the BSP, which has over $100 billion in reserves, apparently prefers to “let market forces run it,” Rodriguez said. “Maybe the BSP is not really that bothered because it could have easily intervened if it wanted to, to stop the peso from weakening further,” he added.
BSP explains tack
MEANWHILE, the BSP said in the statement that it allows the exchange rate to be determined by market forces.
“We continue to maintain robust reserves. 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,” the central bank said. The weakness of the peso could be tempered by the inflows of remittances from overseas Filipinos by the end of the year, Rodriguez said, but there are also global headwinds adding pressure. For his part, BDO Capital & Investment Corporation President Eduardo Francisco told BusinessMirror that the recent peso depreciation is driven by sentiment and not due to economic fundamentals. See “Peso,” A9
BusinessMirror A broader look at today’s business
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Wednesday, October 29, 2025 Vol. 21 No. 21
P25.00 nationwide | 2 sections 22 pages | 7 DAYS A WEEK
By Samuel P. Medenilla @sam_medenilla
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UALA LUMPUR— Likening the chairmanship of the 2026 Association of Southeast Asian Nations (ASEAN) Summit to captaining a ship in turbulent waters, President Ferdinand Marcos Jr. has vowed to steer the regional bloc to peace through pragmatism and dialogue. On Tuesday, Malaysian Prime Minister Anwar Ibrahim formally handed the gavel, which symbolized the ASEAN chairmanship, to Marcos after the closing ceremony of the 47th ASEAN Summit and related meetings, and the turnover ceremony for ASEAN chairmanship at See “asean,” A2
After Asean, Marcos readies for Apec next
PHIVOLCS FLAGS STRONGER QUAKE THREATS NATIONWIDE By John Eiron R. Francisco
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ACOLOD CITY—Stronger earthquake threats exist in other parts of the Philippines aside from the so-called “Big One” in the nation’s capital, according to the state seismology and volcanology agency. “We are focusing on the big one on Metro Manila basically because it’s the political seat of the government, it’s the economic hub of the country. But again, we forget that there are bigger ones in other parts of the country,” Phivolcs Director Teresito Bacolcol said during the HANDA Pilipinas Visayas leg in this city. He cited several major fault lines, in-
cluding the Philippine Fault in Nueva Ecija, which could trigger a magnitude 7.9 quake, stronger than the 7.2 magnitude event expected from the West Valley Fault. The Negros Trench, he added, spans roughly 400 kilometers and has the potential to generate an 8.2 magnitude earthquake. Bacolcol, meanwhile, cautioned that if an 8.2-magnitude earthquake occurs and is shallow in origin, it could generate a tsunami that may impact the western coastlines of Negros and Panay, and possibly extend to Palawan and Zamboanga. He urged residents in coastal areas to recognize the natural warning signs of a tsunami, as it can strike within minutes folSee “Quake,” A2
By Malou Talosig-Bartolome
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FREE TRADE, TIGHT TENSIONS China’s Premier Li Qiang delivers a speech at the Asean– China Summit in Kuala Lumpur, as the bloc and Beijing sign an expanded free-trade agreement, October 28, 2025. Li called for unity amid “economic bullying,” seen as a swipe at US protectionism. Above: Malaysia’s Prime Minister Anwar Ibrahim hands the Asean gavel during a transfer of chairmanship at the closing ceremony to President Ferdinand Marcos Jr., who welcomed the expanded trade pact, but stressed that “this cooperation cannot exist alongside coercion,” in reference to maritime disputes with China. AP PHOTOS / VINCENT THIAN AND RAFIQ MAQBOOL
RESH from the ASEAN Summit in Kuala Lumpur, President Ferdinand R. Marcos Jr. heads to South Korea for the 32nd Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting, set in Busan and Gongju from October 30 to November 2. The summit unfolds amid rising trade tensions, the rise of minilateral alliances, and deepening geopolitical divides—challenges that have strained APEC’s role as a consensus-driven economic forum. While APEC remains a key venue for dialogue on innovation, trade, and inclusive growth, its
ability to deliver unified action is increasingly under pressure.
Who’s at the table: APEC’s 21 Member Economies
APEC brings together 21 diverse economies: Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the United States, and Viet Nam. These members span vastly different political systems, strategic interests, and development stages—making consensus-building See “Apec,” A2
PESO EXCHANGE RATES n US 58.6870 n JAPAN 0.3839 n UK 78.3061 n HK 7.5551 n CHINA 8.2580 n SINGAPORE 45.2657 n AUSTRALIA 38.4693 n EU 68.3527 n KOREA 0.0410 n SAUDI ARABIA 15.6499 Source: BSP (October 28, 2025)