Peso likely to fall further vs US dollar as Fed remains hawkish: analyst

ABS-CBN News

Posted at Sep 30 2022 11:02 AM | Updated as of Sep 30 2022 12:00 PM

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The peso depreciation against the US dollar is widely expected to continue as the US Federal Reserve indicated it would keep rates high and implement more hikes in the near term, an analyst said on Friday.

"The bull run of the dollar isn’t ending anytime soon," Regina Capital Technical Analyst Corenne Agravio told ANC.

"At this point, all things point to the peso depreciating further the next few weeks while the dollar is still growing stronger. The Fed really hasn’t changed their stance, they’re still being very aggressive," she said.

The peso's all-time low against the US dollar is currently at $58.999 but it has touched P59.02 intraday on Sept. 28. So far, it has been trading steadily in the last 2 days.

Agravio said it is unlikely to recover beyond P58 anytime soon.

But several analysts and the National Economic and Development Authority said the seasonal increase in remittances or "pamasko" during the holidays could strengthen the local currency temporarily.

On Friday, the peso traded for as low as P58.79 against $1 as of 10:40 a.m.