MANILA – The peso held at its lowest levels in a decade, while share opened flat, as Asian stocks steadied and the dollar recovered from losses after the Federal Reserve signaled a cautious approach to interest rate increases.
The peso opened at P50.20 to the dollar and dipped to P50.24 in early trading. It closed at P50.23 on Wednesday.
Share prices edged up 0.07 percent to 7,309.73.
While it did not give a specific timetable, Federal Reserve policy-makers said it might be appropriate to hike rates “fairly soon,” weakening the dollar.
The dollar had gained in recent days on expectations the Fed could implement the first of up to three adjustments this year in March. Worries over the Fed’s tightening pace weighed on the peso.
Higher interest rates in the US could drive funds out of emerging markets like the Philippines, increasing demand for the dollar. -- with reports from Reuters