Connect with us

Hi, what are you looking for?


Peso weakens further after Fed hikes rates by 75 bps

THE PESO weakened further against the dollar on Thursday after the US Federal Reserve delivered its biggest rate hike since 1994.

The local unit closed at P53.47 versus the greenback, down by 3.5 centavos from its P53.435 finish on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session at P53.30 against the dollar. Its intraday best was at P53.29, while its worst showing for the day was at P53.495 versus the greenback.

Dollars exchanged went down to $1.141 billion on Thursday from $1.164 billion on Wednesday.

The local unit declined after the Fed hiked its benchmark interest rates by 75 basis points (bp), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. The bigger hike came after US inflation hit a 40-year high in May.

The Fed on Wednesday said officials also expect to raise rates steadily this year, with more 75-bp hikes still on the table.

The US central bank has hiked borrowing costs by a total of 150 bps since starting its tightening cycle in March.

For today, a trader said the peso may drop further on expectations of a dovish statement from the Bank of Japan (BoJ). The BoJ is widely expected to keep its ultra-low interest rate targets unchanged at its two-day review that ends on Friday.

Mr. Ricafort gave a forecast range of P53.35 to P53.50, while the trader expects the peso to move from P53.30 to P53.50 per dollar. — KBT

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!



PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...


Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...


Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...


REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...


Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

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...


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...


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...

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.