Connect with us

Hi, what are you looking for?


Peso sinks vs dollar as country’s BoP deficit hits four-year high in Sept.


THE PESO ended weaker versus the dollar on Wednesday as the country posted a four-year high balance of payments (BoP) deficit in September and amid hawkish signals from a US Federal Reserve official.

The local unit closed at P58.945 against the dollar on Wednesday, down by 19.5 centavos from P58.75 on Tuesday, data from the Bankers Association of the Philippines’ website showed.

The peso opened the session at P58.85 against the dollar. Its weakest showing was at P58.99, while its intraday best was at P58.8 versus the greenback.

Dollars exchanged went up to $654 million on Wednesday from $610.8 million on Tuesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso weakened versus the dollar as latest data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed the country’s BoP gap stood at a four-year high last month.

The country posted a $2.3-billion BoP deficit in September, bigger than the $572-million deficit the prior month. This was also wider than the $412-million deficit seen in September 2021 and is the biggest since the $2.696-billion gap recorded in September 2018.

In the first nine months, the country’s BoP gap widened to $7.83 billion from the $665-million deficit posted in the same period in 2021.

The BSP expects the country’s BoP position to end the year at an $8.4-billion deficit equivalent to -2% of gross domestic product amid weaker global demand.

The peso also weakened after the hawkish comments from a Fed official, Mr. Ricafort added.

The Fed may need to push its benchmark policy rate above 4.75% if underlying inflation does not stop rising, Minneapolis Federal Reserve Bank President Neel Tushar Kashkari said on Tuesday.

The US central bank has raised borrowing costs by 300 basis points (bps) since March. The US federal funds rate is now at 3-3.25%.

Markets expect the Fed to fire off a fourth straight 75-bp increase in its Nov. 1-2 meeting as inflation remains high.

For Thursday, Mr. Ricafort gave a forecast range of P58.80 to P59 per dollar. — K.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!



Data is becoming the lifeline of businesses today. Organizations are beginning to realize that they have to know how to store and manage data...


Five-dollar bills are inspected at the Bureau of Engraving and Printing in Washington, D.C., March 26, 2015. — REUTERS THE PHILIPPINES’ dollar reserves dipped...


Families enjoy taking pictures around Luneta Park in Manila, Nov. 28. Economic managers are targeting 6.5-7.5% gross domestic product growth this year, and 6-7%...


Students attend a cooking class at the Technical Education, Skills and Development Authority (TESDA) training school in Taguig City, March 23. — PHILIPPINE STAR/...


Filipino fans attend K-pop group NCT 127’s concert at the SM Mall of Asia in Pasay City, Sept. 2. Aside from NCT 127, many...


SAM WORTHINGTON in Avatar: The Way of Water LONDON — Filmmaker James Cameron is taking audiences back to his visually mesmerizing world of Pandora,...

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.