We all know Duterte is a factor on the depreciation of the Phil . Peso , but it is not as big as others claim . Let us not make him bigger than what he really is . hits 501 levelBangko Sentral ng Pilipinas Governor Amando M . Tetangco Jr . yesterday attributed the weakness of the peso as well as other emerging market currencies to sustained strength of the US dollar , considered a safe haven by investors , amid global uncertainty . Basically , the weakness in emerging market currencies is due to dollar strength . And why is that so ? Because of expectations that interest rates are going to rise in the US . And because as the incoming Trump administration pushes for increased spending and more rapid economic growth , that may result in higher inflation and therefore higher interest rates . Because of that , we are seeing the flow of capital out of emerging markets and back to the United States , Tetangco told reporters . If you look at the movements of Asian regional currencies , the Philippine peso is basically in the middle of the range in terms of both the actual movement , meaning depreciation since the beginning of the year , as well as in terms of volatility of exchange rate movements . As I have mentioned , we are sticking to our current foreign exchange policy of allowing market forces to basically determine the exchange rate . But at the same time , we also do not want to see the exchange rate becoming out of line . And we don ' t want to see too much volatility in exchange rate movements such that this can cause the disanchoring of the expectations , Tetangco said .