Connect with us

Hi, what are you looking for?

Economy

Peso weakens ahead of BSP meeting

THE PESO weakened versus the dollar on Thursday ahead of the central bank’s latest policy decision and after the New York City government ordered schools to close again amid rising cases of the coronavirus disease 2019 (COVID-19) there.

The local unit closed at P48.315 versus the dollar on Thursday, decreasing by 9.5 centavos from its P48.22 finish on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session at P48.25 against the greenback. Its intraday best stood at P48.245, while its weakest showing was at P48.33 versus the dollar.

Dollars traded rose to $692.3 million on Thursday from $635.8 million on the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso declined ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy decision in the afternoon on Thursday.

“The peso was weaker ahead of the BSP monetary policy-setting later today with possible reserve requirement ratio cut or monetary easing measures,” he said in a text message on Thursday.

The BSP Monetary Board on Thursday cut benchmark rates by another 25 basis points (bps) to bring the rates on its overnight reverse repurchase, deposit and lending facilities to two percent, 1.5% and 2.5%, respectively, effective Friday. This brings the central bank’s cumulative cuts for the year to 200 bps.

In a BusinessWorld poll last week, 11 out of 16 analysts had expected the BSP to continue its “prudent pause” at its sixth policy meeting. Some analysts, however, pointed to the sluggish pace of recovery and benign inflation as signs there is still room for the central bank to cut rates. 

“The peso weakened due to some market caution ahead of the BSP policy decision later today. There was also some safe-haven demand after New York City announced the re-imposition of school closures amid increasing COVID-19 new cases,” the trader said in an e-mail.

The US death toll from COVID-19 surpassed a grim new milestone of 250,000 lives lost on Wednesday, as New York City’s public school system, the nation’s largest, called a halt to in-classroom instruction, citing a jump in coronavirus infection rates, Reuters reported.

The decision to shutter schools and revert exclusively to at-home learning, starting on Thursday, came as state and local officials nationwide imposed restrictions on social and economic life to tamp down a surge in COVID-19 cases and hospitalizations heading into winter.

For today, Mr. Ricafort sees the peso moving from P48.22 to P48.37 versus the dollar, while the trader expects it to range from P48.20 to P48.40. — KKTJ

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
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

Investing

The goal for most businesses is to grow, so the concept of bad growth may seem counterintuitive to a lot of business owners. However,...

Investing

Employees of all companies will be able to request flexible working arrangements when they start new jobs under proposals to be published by ministers....

Investing

Our perspectives on remote working have changed dramatically over the course of the pandemic. No doubt many employers in 2019 would have assumed that...

Economy

The Bangko Sentral ng Pilipinas (BSP) lowered the country’s balance of payments (BoP) surplus projection for this year, reflecting the lower current account surplus and the risks...

Economy

The Securities and Exchange Commission (SEC) is encouraging more companies to tap the capital markets, in hopes that there would be over 800 companies listed at...

Economy

Outsourcing firms operating in economic zones are allowed to implement remote work arrangements until March 2022 as the pandemic continues, the Finance department said...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.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 © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



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!