PESO moved further against the dollar on Wednesday after hawkish signals from the US Federal Reserve.PippiTensions between the US and China are escalating.
The local unit closed at P55.74 per dollar, down 30.5 centavos from P55.435 on Wednesday. pieIt will be completed on Tuesday, based on data from the Bankers Association of the Philippines.
The peso also opened Wednesday’s session at P55.55 against the dollar, which was an intraday high. The weakest performance of the day was P55.777 versus the US dollar.
Dollars exchanged rose to $922.1 million on Wednesday from $77.17 million on Tuesday.
“The peso has weakened again for the third day in a row, but is still close to a one-month low after a healthy upward revision of the US dollar against major global currencies and a healthy upward revision of US Treasury yields amid hawkish signals from the Fed. Rizal Commercial Banking Corp .’s chief economist Michael L. Ricafort said in a Viber message, “I explained to officials the need to keep fighting rising inflation.
“The peso has weakened by several Feds.Pippicials dismissed the view that the US central bank rate hike is almost over,” said one trader.
San Francisco Fed President Mary Daley, Cleveland Fed President Loretta Mester and Chicago Fed President Charles Evans said on Tuesday that they would continue to support increases to curb US inflation, hitting another 40-year high in June. .
The Fed raised its benchmark interest rate by 75 basis points at its second meeting in July. Since March, we have raised borrowing costs by 225 basis points.
The peso also fell due to geopolitical risks after US House Speaker Nancy Pelosi visited Taiwan, Ricaport said.
The first trader added, “The local currency could continue to depreciate as the rising geopolitical risk between the US and China could increase the demand for new safe-haven assets against the US dollar.”
First traders on Thursday expect the peso to move from P55.65 to P55.85 per dollar, while Mr. Ricafort expects a range from P55.60 to P55.80. Meanwhile, the second trader offered a wider trading range from P55.60 to P55.90. — KB Taasan
