Peso closes at P55.979 to $1; further weakening seen

ABS-CBN News

Posted at Jul 11 2022 05:05 PM

MANILA - The Philippine peso on Monday closed at P55.979 against the dollar, according to the Bankers Association of the Philippines website. 

The peso, which was hovering at its lowest level in 17 years, could further weaken as the US Federal Reserve continue with its aggressive rate hikes to temper inflation, ING Bank senior economist Nicholas Mapa told ANC.

The peso dipped to P56.06 last week.

"Short-term we could see some peso weakness especially with the Fed hiking by 75-basis points and then leaving the BSP expose for a good three weeks before they can actually hike. I think this is when we can see a little more weakness from the peso," Mapa said.

Bangko Sentral ng Pilipinas Governor Felipe Medalla said the monetary board is prepared to implement a 50-basis points rate hike in August. Mapa said it should be followed by another 50-bps hike as inflation continued to accelerated.

Inflation in June quickened to 6.1 percent, remaining above the government target of 2 to 4 percent.

Meanwhile, Philippine shares closed at the 6,388.64 level up by 2682 points or 0.42 percent.

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