Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Peso may strengthen further vs dollar

by
July 31, 2022
in Investing News
0
Peso may strengthen further vs dollar
0
SHARES
10
VIEWS
Share on FacebookShare on Twitter
BW FILE PHOTO

THE PESO may appreciate versus the dollar this week as the Bangko Sentral ng Pilipinas (BSP) chief remained hawkish despite the US Federal Reserve’s dovishness, but expectations of faster Philippine inflation in July could dampen sentiment.

The local unit closed at P55.13 per dollar on Friday, surging by 69 centavos from its P55.82 finish on Thursday, based on Bankers Association of the Philippines data.

It also strengthened by P1.15 from its P56.28-per-dollar finish a week earlier.

Dollars exchanged rose to $1.57 billion on Friday from $1.27 billion on Thursday.

The peso strengthened on Friday following softer US economic growth in the second quarter that fueled recession fears, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The US Commerce department on Thursday said gross domestic product (GDP) fell at a 0.9% annualized rate last quarter amid aggressive monetary policy tightening by the Federal Reserve to quell high inflation.

The Fed raised rates by 75 basis points (bps) for a second straight meeting last week.

The dollar weakened as comments from Fed chief Jerome H. Powell after their July 26-27 meeting were seen as dovish, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

The Fed’s decision to deliver a third straight increase of 75 bps at its Sept. meeting will be guided by whether they see firm evidence of inflation beginning to subside, Mr. Powell said last week.

“The peso also stronger recently after global crude oil prices hovered among the lowest in about three months… alongside the downward correction in other global commodity prices that could help ease inflationary pressures and lower the country’s oil import bill,” Mr. Ricafort added.

For this week, Mr. Asuncion said the Fed’s dovish tone could cause the dollar to decline. With the BSP continuing to be hawkish, this could support the peso, he said, along with lower oil prices.

However, expectations of above 6% headline inflation in July may affect market sentiment, Mr. Asuncion added.

Inflation likely quickened in July as food and oil prices continued to climb, but lower electricity rates and oil price cuts may slow down the monthly gain, according to analysts. 

A BusinessWorld poll of 14 analysts last week yielded a median estimate of 6.2% for July inflation, within the BSP’s 5.6-6.4% forecast for the month. If realized, this would be faster than the 6.1% print seen in June and the 3.7% in July 2021. 

BSP Governor Felipe M. Medalla last week said they could hike benchmark rates by 25 bps or 50 bps at their Aug. 18 meeting to keep inflation in check.

For this week, Mr. Asuncion gave a forecast range of P55.50 to P56.10 per dollar, while Mr. Ricafort expects the peso to move within P54.80 to P55.40. — Keisha B. Ta-asan

ShareTweetPin

Related Posts

Stocks decline on profit taking, recession fears
Investing News

Stocks decline on profit taking, recession fears

August 23, 2022
Peso climbs vs dollar as RTB offer starts
Investing News

Peso climbs vs dollar as RTB offer starts

August 23, 2022
PNR cancels bids for 3 projects after finding them ‘non-feasible’
Investing News

PNR cancels bids for 3 projects after finding them ‘non-feasible’

August 23, 2022
Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Next Post
CTA declines to review Marubeni unit’s tax dues

CTA declines to review Marubeni unit’s tax dues

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

Recommended

Carmen Guerrero Nakpil 100

Carmen Guerrero Nakpil 100

July 14, 2022
Reserves inch down to $101.983B at end-June

Reserves inch down to $101.983B at end-June

July 7, 2022
Pag-IBIG Fund finances 8,471 homes for low-wage earners in H1 2022

Pag-IBIG Fund finances 8,471 homes for low-wage earners in H1 2022

July 22, 2022
Behind the development of Top 1000 Corporations

Behind the development of Top 1000 Corporations

August 10, 2022
PHL among SEA countries where smartphones are unaffordable — iPrice

PHL among SEA countries where smartphones are unaffordable — iPrice

July 20, 2022
Fresh COVID wave sweeps Asia, NZ warns of pressure on hospitals

Fresh COVID wave sweeps Asia, NZ warns of pressure on hospitals

July 14, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.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.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.