Connect with us

Hi, what are you looking for?


Peso likely to weaken vs dollar on expectations of high inflation


THE PESO is seen to weaken versus the greenback this week amid expectations of faster inflation in October.

The local unit closed at P50.415 per dollar on Friday, gaining 29.5 centavos from its P50.71 finish on Thursday, data from the Bankers Association of the Philippines showed.

It also appreciated by 37.1 centavos from its P50.786 finish a week earlier.

The peso appreciated on expectations of the resumption of oil exports from Iran, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Iran’s top negotiator said nuclear talks with six world powers could be renewed by the end of November, Reuters reported. A deal could lead to the lifting of sanctions on Iran’s oil exports.

The peso also strengthened on the back of the continued decline in coronavirus infections, as this could support further reopening of the economy, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

Active cases increased by 4,008 to 47,690 on Saturday, based on data from the Department of Health.

Metro Manila will remain under Alert Level 3 until Nov. 14, the Palace announced on Friday.

Presidential Spokesperson Herminio “Harry” L. Roque, Jr. said they have kept the restriction measures to prevent the infections from spiking. It will also buy time for the government as it continues assessing whether to further ease restrictions, he said.

For this week, Mr. Ricafort said the market will monitor the inflation outturn for October. The Philippine Statistics Authority will release the inflation data for the month on Nov. 5.

A BusinessWorld poll of 21 analysts held last week yielded a median estimate of 4.9% for the consumer price index last month, matching the midpoint of the 4.5% to 5.3% forecast given by the Bangko Sentral ng Pilipinas (BSP).

If realized, October inflation would be above the 2-4% BSP target for the third straight month. It will also be faster than the 4.8% in September and the 2.5% seen a year earlier.

Analysts said food prices likely inched higher last month due to low supply caused by weather disruption. Continued increase in global oil prices also likely pushed inflation higher, they added.

Meanwhile, Mr. Asuncion said the market will take cues from the US Federal Reserve’s meeting this week.

The market is widely expecting the Fed to announce details of asset purchase tapering at the Federal Open Market Committee’s policy review on Nov. 2-3. However, markets have not yet priced in a rate hike, at least in the next few months.

For this week, Mr. Ricafort gave a forecast range of P50.20 to P50.60, while Mr. Asuncion expects the local unit to move within P50.50 to P51 per dollar. — L.W.T. Noble 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!



A worker of Ayala Corp’s Integrated Micro-Electronics Inc. (IMI) solders an automotive computer component part at an electronics assembly line in Binan, Laguna south...


MARI GIMENEZ-UNSPLASH THE NATIONAL Government plans to borrow P200 billion from the domestic market in July, the Bureau of the Treasury (BTr) said on...


SCOTT GRAHAM-UNSPLASH PHILIPPINE PRESIDENT Rodrigo R. Duterte has signed an order updating the list of investment areas where foreign ownership is limited or barred....


ETIENNE GIRARDET-UNSPLASH WHOLESALE PRICES of building materials in Metro Manila jumped to their highest in more than a decade in May as construction activities...


MAYNILAD Water Services, Inc. targets to distribute starting in July up to 10 million liters per day (MLD) of its “new water” or treated...


SOLAR Philippines Power Project Holdings, Inc. was able to forge contracts for at least 60% of the 10 gigawatts (GW) of energy capacity that...

You May Also Like


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...


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...


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...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

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.