Peso strengthens on rate cut expectations
THE peso appreciated against the dollar on Friday after monetary policy decisions from several central banks this week, including the US Federal Reserve cutting interest rates.
The local currency closed 22 centavos stronger at P51.96 a dollar, which was also its best intraday value, according to data from the Bankers Association of the Philippines website.
“The peso appreciation may have been the offshoot of a slew of monetary policy decisions this week from various central banks,” UnionBank of the Philippines chief economist Ruben Carlo O. Asuncion said in an email.
The stronger currency might also be due to expectations of a rate cut by the Philippine central bank next week, he said.
The peso opened at P52.26 — its weakest intraday value, data showed. Dollars traded widened to $1.144 billion from $1.114 billion a day earlier.
Reuters reported that US Treasury yields fell on Thursday after the Fed meeting showed division among policy makers on whether further rate cuts were likely.
The BSP’s Monetary Board will hold a policy meeting on Sept. 26. — Luz Wendy T. Noble
