The Philippine peso finished higher against the US dollar for the second trading day on Thursday following President Ferdinand Marcos Jr comments for Filipinos not to panic as the government has enough tools to defend the currency.

The peso opened at P63.88 against the US dollar and closed at P63.85 from Wednesday's P64.025. The currency hit an all-time low of P64.17 on Tuesday and when it hit P64.18 in early trading, Marcos told reporters in an ambush interview that the government has enough tools to stop the peso's decline.

''I think this is a modest rebound following several days of record lows on the part of the Philippine peso. We may be seeing some correction after the peso's sharp depreciation together with some adjustments on market positions and reactions to government statements and the recent policy action of the BSP (Bangko Sentral ng Pilipinas) in the light of the deterioration of inflation,'' said former central bank deputy governor Diwa Gunigundo in an interview with Bilyonaryo News Channel's Money Matters.

''One or two days of appreciation are encouraging but I don't think they have established a trend,'' added Gunigundo.

Marcos assured Filipinos in an ambush interview on Wednesday that “We have all the tools to defend the peso. We have all the means to defend the peso, and with that in mind, we will continue to do all that we can to make sure that the value of the peso does not continue to go down, especially relative to the dollar”. PHS