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Peso slides further after release of Fed minutes

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AFP

The peso dipped against the dollar on Thursday, May 24, following the release of the minutes of the US Federal Reserve’s May policy meeting.

The local currency ended Thursday’s session at P52.55 against the greenback, eight centavos weaker than the P52.47 finish on Wednesday.

Thursday’s closing rate was the peso’s weakest finish in nearly 12 years since July 19, 2006, when it closed at P52.745.

The peso immediately slid as it opened the session at P52.50 against the greenback. It dipped to a P52.60 low, while its intraday high stood at P52.45.

Dollars traded ended Thursday at $546.55 million, slightly up from the $529.9 million pencilled in the previous session.

Traders interviewed Thursday the peso slipped as a response to the May 1-2 meeting minutes of the Fed’s policy-setting Federal Open Market Committee.




“The peso depreciated following the release of May [FOMC] policy minutes which hinted that the Fed might continue to raise policy rates within the year,” a trader said through e-mail.

Most Fed policymakers, according to a Reuters report, said another interest rate increase is likely needed “soon” if the US economic outlook remains intact, minutes of the meeting last month showed. — Karl Angelo N. Vidal

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