Rhetorical Escalation From Philippine Officials Fails To Prop Up Peso

Spot USD/PHP operates within touching distance from the PHP59 all-time high, even as President Marcos and his administration stepped up their verbal interventions surrounding peso depreciation. The rate last deals +0.011 at PHP58.840, with bears looking for losses past Oct 5 low of PHP58.395.

• USD/PHP 1-month NDF last -0.010 at PHP58.970. Downside focus falls on Oct 5 low of PHP58.520, while bulls keep an eye on the PHP59.460 record high.
• Foreign investors bought a net $12.80mn in Philippine stocks Tuesday. The PSEi rose ~2.7%, moving past Oct 5 high of PHP6,033, with volume exceeding its 15-DMA. The rally lost steam this morning, and the benchmark stock index sits ~0.6% below neutral levels.
• President Ferdinand Marcos Jr joined the group of officials voicing their hawkish leanings amid the rise in consumer prices and rapid peso depreciation. " We may have to defend the peso in the coming months," Marcos tweeted on Tuesday. He added that "number one priority is still inflation" and officials "will continue to use interest rates to mitigate the effects."
• His comments came hours after Econ Planning Sec Balisacan said officials are closely monitoring FX developments, trying to work out the best strategy to curb peso depreciation.
• BSP Gov Medalla had flagged potential for an outsized 75bp rate hike and pointed to the central bank being "very active" in the currency markets.