Connect with us

Hi, what are you looking for?

Top Stories

Editor's Pick

Peso weakens on rising virus cases in Europe, hawkish Fed comments

BW FILE PHOTO

THE PESO declined on Monday amid concerns over rising cases of the coronavirus in some economies and hawkish comments from US central bank officials.

The peso retreated versus the greenback on Monday amid concerns over the rise in coronavirus infections in some European economies and hawkish signals from the US Federal Reserve.

The local unit closed at P50.65 per dollar on Monday, shedding 24 centavos from its P50.41 finish on Friday, based on data from the Bankers Association of the Philippines.

The peso opened Monday’s session weaker at P50.53 per dollar, which was already its intraday best. Meanwhile, its worst showing was at P50.80 versus the greenback.

Dollars traded increased to $1.402 billion on Monday from $1.187 billion on Friday.

A trader said in an e-mail that cautious sentiment due to rising coronavirus cases in Europe, specifically in Austria and Germany, caused the peso to depreciate against the dollar.

Austria on Friday reimposed a lockdown amid rising infection cases, Reuters reported. German officials have signaled that they may follow the move, noting the country is already in a “national emergency.”

Recent statements from Fed officials about speeding up the tapering of asset purchases also affected the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Reuters reported Friday that Fed Vice Chair Richard Clarida said it may be appropriate to assess a quicker reduction in asset purchases at the Fed’s policy review in December.

Separately, Fed Governor Christopher Waller on Friday said the Fed should double the pace of its tapering exercise in order to finish by April and move forward into providing space for a rate hike by the second quarter of 2022.

For Tuesday, Mr. Ricafort gave a forecast range of P50.50 to P50.70 per dollar, while the trader expects the local unit to move within P50.55 to P50.80. — L.W.T. Noble with Reuters

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Editor's Pick

The Board of Investments (BoI) has cleared Sinoma Energy Conservation (Cebu) Waste Heat Recovery Co. Inc. to serve as the operator of a 4.5-megawatt...

Economy

Few individuals can resist the temptation to try before they buy; therefore, it was only a matter of time until online casinos realized this...

Economy

In the wake of Covid-19, people are working harder than ever. While many of us thought productivity may dip when we started working from...

Forex

At a time when the world is battling to get through the dreaded coronavirus pandemic, protective face masks have come out to be the...

Disclaimer: SecretsOfRichDads.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Secrets Of Richdads. All Rights Reserved.