Connect with us

Hi, what are you looking for?

News

Peso strengthens after US CPI release

BW FILE PHOTO

THE PESO strengthened against the dollar on Wednesday after the recent release of positive US consumer inflation data.

The local currency ended at P55.745 against the greenback, inching up by 15.50 centavos from Tuesday’s P55.90 close, data from the Bankers Association of the Philippines’ website showed.

The peso opened the day’s session at P55.65 per dollar. Its weakest showing for the day was at P55.82, while its intraday best was at P55.60 versus the greenback.

Dollars traded jumped to $731.72 million on Wednesday from $1.12 billion on Tuesday.

A trader said in a Viber message that the dollar weakened due to the release of the US consumer price index (CPI) for November.

US consumer prices rose 0.1% last month, which was the lowest rate in 15 months after advancing 0.4% in October, according to data from the Labor department.

Year to date, the CPI climbed 7.1%, the smallest advance since December 2021.

The annual CPI last peaked at 9.1% in June, which was the biggest increase since November 1981.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that this could affect the aggressiveness of future Fed rate hikes.

The Fed is expected to raise rates by just 50 basis points (bps) this week following four straight 75-bp increases.

Meanwhile, the BSP is set to hold its policy meeting on Thursday, where it is also expected to hike rates by 50 bps, following the Fed’s decision.

Mr. Ricafort expects the local unit to move from P55.65 to P55.85 per dollar on Thursday, while the trader gave a wider forecast range of P55.20 to P56, as the market reacts to the Fed’s meeting results. — Aaron Michael C. Sy

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!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> Pressure on the Tory Party chairman increases as the head of HMRC says there are no penalties for ‘innocent errors’. Nadhim...

Editor’s Pick

<?xml encoding=”utf-8″ ??> With the increased threat of industrial strike action looming across the UK, we consider whether a force majeure clause can strike...

Editor’s Pick

<?xml encoding=”utf-8″ ??> TSB’s 5,700 staff and executives are to share a 10% bigger bonus pot this year, after rising interest rates pushed the...

Editor’s Pick

<?xml encoding=”utf-8″ ??> NatWest is to shut another 23 branches in England and Wales, adding to a raft of high street banking closures already...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Shell has put more than 2,000 jobs in the UK at risk after launching a “strategic review” of its domestic energy...

Editor’s Pick

<?xml encoding=”utf-8″ ??> British taxpayers have become shareholders in a further 53 companies backed by a government rescue funding scheme. These firms include a...

You May Also Like

News

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...

News

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...

News

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...

News

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 Investment.com, 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.