Connect with us

Hi, what are you looking for?


Peso may rise before central bank review

THE PESO may strengthen this week on expectations that the central bank will raise benchmark rates anew at its meeting on Thursday. 

The local unit ended at P55.61 per dollar on Friday, weaker by 31 centavos from its P55.30 close on Thursday, based on Bankers Association of the Philippines data.

It also depreciated by 41 centavos from its P55.20-a-dollar finish a week earlier.

The peso depreciated after hawkish signals from another US Federal Reserve official, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Federal Reserve Bank of San Francisco President Mary Daly on Thursday said she is open to a bigger rate hike at the Fed’s Sept. 20-21 meeting if inflation remains persistently elevated.

There was also risk-off sentiment in the market as oil prices increased after several days of decline, Mr. Ricafort added.

For this week, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said a widely expected hawkish move from the Bangko Sentral ng Pilipinas (BSP) will affect the foreign exchange market. He said the market will monitor the BSP’s forward guidance amid elevated inflation and a softening economy recovery.

Mr. Asuncion added that the peso may strengthen as the dollar has dropped from its recent highs.

The majority of 18 analysts polled by BusinessWorld last week expect the Monetary Board to raise benchmark rates on Aug. 18, while two see no changes to borrowing costs.

Of the 16 analysts expecting a rate hike, 13 see a 50-basis-point (bp) increase while three anticipate a 25-bp move.

BSP Governor Felipe M. Medalla earlier said the central bank’s policy-setting Monetary Board may hike rates by 50 bps at their Aug. 18 meeting after headline inflation surged to a near four-year high of 6.4% in July from 6.1% in June and 3.7% a year ago.

For the first seven months, inflation averaged 4.7%, faster than the 4% seen in the same period in 2021 and the central bank’s 2-4% target for the year but lower than its 5% forecast.

For this week, Mr. Asuncion expects the peso to move from P55 to P55.60 a dollar, while Mr. Ricafort gave a forecast range of P55.30 to P55.80. — K.B. Ta-asan

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Your email address will not be published.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!



WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...


By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...


THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...


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


THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...


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


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


The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


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...

Disclaimer:, 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.