Connect with us

Hi, what are you looking for?


Peso climbs as dollar slips from three-month high


THE PESO rebounded on Thursday as the dollar inched lower, despite the release of strong US data that affirmed expectations of a hawkish US Federal Reserve.

The local currency closed at P55.24 versus the greenback on Thursday, rising by eight centavos from Wednesday’s P55.32 finish, data from the Bankers Association of the Philippines’ website showed.

The peso opened Thursday’s trading session at P55.25 per dollar. Its intraday best stood at P55.14, while its worst showing was at P55.29 against the greenback.

Dollars traded went down to $926.3 million on Thursday from the $1.022 billion recorded on Wednesday.

The peso mostly traded sideways during the session and corrected along with the dollar index, a trader said in a Viber message.

“The dollar-peso exchange rate also corrected slightly lower after the gauge of the dollar versus major global currencies corrected slightly lower from new three-month highs recently,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Federal Reserve Chair Jerome Powell, who earlier signaled the possibility of more Fed rate hikes and higher Fed rate peak if elevated inflation persists, stressed that no decision has been made on the size of the Fed rate hike in March 2023,” he added.

The dollar held near a three-month high on Thursday, underpinned by Mr. Powell’s message that interest rates would have to go higher and possibly faster, Reuters reported.

In the second day of his testimony to Congress on Wednesday, Mr. Powell reaffirmed his message, though he struck a cautious note, saying debate on the scale and path of future rate hikes was still underway and would depend on data.

That caused the dollar to pause its sharp rally from earlier in the week, retreating from close to a three-month top against the yen. It was down 0.6% at 136.55 yen.

The dollar index edged 0.05% lower to 105.57 and remained near a three-month peak of 105.88 hit on Wednesday.

In the United States, data released overnight painted a picture of a sturdy economy, doing little to assuage fears the Fed will ease up on its relentless rate hikes.

Job openings remain elevated, private payrolls beat consensus estimates and demand for home loans increased despite higher mortgage rates.

Fed funds futures now imply a nearly 70% chance the Fed will raise rates by 50 basis points (bps) this month, up from just about 9% a month ago.

The Fed hiked its target interest rate by 25 bps at its Jan. 31 to Feb. 1 meeting to a range between 4.5% and 4.75%.

Since March 2022, the US central bank has raised rates by a total of 450 bps. Its next policy meeting is on March 21-22.

“The peso is still relatively stable at familiar ranges recently after the recent signals from local monetary authorities that they are ready to use tools available in the policy toolkit to help stabilize inflation… as this could also support more comfortable interest rate differentials that somewhat support the peso,” RCBC’s Mr. Ricafort added.

The Bangko Sentral ng Pilipinas will hold its own policy meeting on March 23. It has hiked borrowing costs by 400 bps since May 2022, with its key rate now at 6%, to fight rising inflation.

For Friday, the trader expects the peso to trade between P55 and P55.50 per dollar, while Mr. Ricafort gave a forecast range of P55.20 to P55.40. — AMCS with Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



The Independent Electricity Market Operator of the Philippines (IEMOP) is holding a big conference, the Philippine Electric Power Industry Forum (PEPIF) 2023, with the...


TIM MOSSHOLDER-UNSPLASH TECHNOLOGY is moving at lightning speed. In my lifetime alone, the world as we know it has orbited into a completely different...


A man wearing a protective mask is reflected on an electronic board displaying various companies’ stock prices outside a brokerage in Tokyo, Japan, Feb....


KREMLIN.RU/EVENTS/PRESIDENT/NEWS/60363/PHOTOS-COMMONS.WIKIMEDIA.ORG SEOUL — North Korean leader Kim Jong Un has overseen drills simulating a nuclear counterattack against the US and South Korea in a...


RAGHAVENDRA V KONKATHI-UNSPLASH LONDON — Some of the world’s leading makers of flu vaccines say they could make hundreds of millions of bird flu...


BW FILE PHOTO Productivity and customer experience management tools are the most sought-after tools among companies in the Philippines, with businesses of all sizes...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.