The peso strengthened against the dollar on Friday, July 20, after the local central bank hinted at another interest rate hike during its next monetary policy meeting.
The local unit ended today’s session at P53.51 versus the greenback, two centavos stronger than the P53.53-per-dollar finish on Thursday.
Dollars traded increased to $474.05 million from the $334.7 million that switched hands the previous day.
One trader said the peso appreciated today amid hawkish cues from the Bangko Sentral ng Pilipinas “suggesting of a possible August rate hike.”
In his speech, BSP Governor Nestor A. Espenilla, Jr. said the monetary authority is “considering” to hike its benchmark rates to temper inflation expectations.
Last month, headline inflation accelerated to a five-year high of 5.2%, faster than the 4.6% inflation printed in May as well as the government expectations. — Karl Angelo N. Vidal