Connect with us

Hi, what are you looking for?


Peso sinks ahead of Fed decision


THE PESO weakened versus the dollar on Wednesday on expectations of another aggressive rate hike from the US Federal Reserve.

The local unit closed at P58.47 against the dollar on Wednesday, down by 50 centavos from P57.97 on Friday, data from the Bankers Association of the Philippines’ website showed.

Philippine financial markets were closed for public holidays from Oct. 31 to Nov. 1.

The peso opened Monday’s session at P58.05 against the dollar. Its weakest showing was at P58.49, while its intraday best was at P58.02 versus the greenback.

Dollars exchanged went down to $844.15 million on Wednesday from $912.35 million on Friday.

“The peso depreciated due to market caution ahead of the US Federal Reserve policy decision this week,” a trader said in an e-mail.

“The US dollar also corrected higher recently vs. major global currencies to one-week highs … ahead of the widely expected jumbo rate hike of +0.75 on Nov. 2,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“Mostly stronger-than-expected US economic data since late last week… could still support further aggressive Fed rate hikes in the quest to significantly bring down elevated US inflation from 40-year highs recently,” Mr. Ricafort said.

The Fed is widely expected to raise benchmark rates by at least 75 basis points at its Nov. 1-2 meeting to temper soaring inflation. The decision was expected to be announced overnight.

“The peso backtracked ahead of the much-anticipated Fed meeting. With expectations for a hefty rate hike from [Fed Chair Jerome] Powell, risk assets took a backseat and slid. The market is now hopeful for some guidance for the so-called Fed pivot,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said on Wednesday.

For Thursday, the trader said the peso may strengthen ahead of a potentially weak US initial jobless claims report.

The trader sees the peso moving within P58.40 to P58.60 against the dollar on Thursday, while Mr. Ricafort gave a forecast range of P58.35 to P58.55. — Keisha B. Ta-asan

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!



REUTERS THE Philippine Chamber of Commerce and Industry (PCCI) said the issues raised against joining the Regional Comprehensive Economic Partnership (RCEP) should pose no...


REUTERS THE PHILIPPINES will need to tap emerging technology like green hydrogen to shore up energy security during its transition to green sources of...


REUTERS UPGRADED CYBER-DEFENSES need to accompany greater adoption of the blockchain, artificial intelligence, and financial technology, extending the blanket of security to other entities...


REUTERS FARMER organizations are asking the government not to extend a scheme of lowered tariffs on food imports, which expire at the end of...


By Arjay L. Balinbin, Senior Reporter INCREASED investment in maritime supply chains, including ports, shipping fleets, and hinterland connections, is needed to boost sustainability...


The social and economic effects of the pandemic were on a scale so massive that many did not see an end in sight. However,...

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...


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...


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...

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.