Philippines: Peso sheds another 19¢

• Jun 22, 2017

MANILA, Philippines –  The peso continued to lose steam, shedding another 19 centavos yesterday to hit its lowest level in almost three months as investors shifted their funds to safe havens due to the decision of the US Fed to return its interest rate policy to normal. 

The local currency closed at 50.29 to $1 from Tuesday’s 50.10 to $1. This was the lowest since it closed at 50.325 to $1 last March 24.

The peso opened weaker at 50.17 and hit an intra-day low of 50.295 before recovering slightly to close at 50.29 to $1.

Volume amounted to $727.25 million, lower than Tuesday’s $1.15 billion.

The US central bank has taken a hawkish stance as it raised interest rates by another 25 basis points this month, the third rate hike since December as part of its normalization path.

In its Daily Market Edge report, Security Bank Corp. said the dollar resumed its ascent after Dudley echoed the hawkishness of US Fed chair Janet Yellen last week.

“We still have more fed speakers for the rest of the week and I think the US dollar will remain supported at these current levels,” the bank added.

Source: http://www.philstar.com/business/2017/06/22/1712274/peso-sheds-another-19c