MANILA - The peso on Tuesday retreated to the P50 level against the dollar, after comments from the head of the New York Federal Reserve powered the greenback to a 3-week high.
The peso weakened to P50.085 in early trading after opening at P49.99. It closed at P49.91 on Monday.
New York Fed president William Dudley said that tightening in the labor market should help drive up inflation.
That helped offset concerns among some investors that stubbornly low inflation could prevent the Fed from raising interest rates further this year.
The greenback has edged higher since the Fed raised interest rates last Wednesday and announced it would begin cutting its holdings of bonds and other securities later this year, while indicating that a recent softening in inflation was seen as transitory.
Against a basket of six major currencies, the dollar rose to as high as 97.609 at one point on Tuesday, its highest level since May 30.
The euro held steady at $1.1145, having retreated from a 7-month peak of $1.1296 set on June 14.
- with a report from Reuters