The PESO weakened against the greenback on Tuesday on expectations of rapid U.S. inflation and losses in the local stock market.
The local unit closed at P52.10 per dollar on Tuesday, losing five cents from its P52.05, according to data from the Bankers Association of the Philippines.
The peso opened at P52.15 against the dollar on Tuesday. Its weakest performance was at P52.29, whereas its intraday best was at P52.06 as opposed to Greenback.
The dollar exchange rate fell to $ 1.416 billion on Tuesday from $ 1.635 billion on Monday.
“The peso has weakened in anticipation of a high U.S. consumer inflation report for March,” a trader said in an email.
The March US Consumer Price Index report was due to be released overnight. US inflation hit a 40-year high of 6.9 percent in February.
Last month, the Federal Reserve raised interest rates by a quarter of a percentage point to start its tough cycle in response to rising inflation.
Meanwhile, Michael L., chief economist at Rizal Commercial Banking Corporation. Ricafort said the peso has been devalued due to the fall in the local stock market.
The Philippine Stock Exchange index fell 92.93 points, or 1.33%, to close at 6,895.36, while the broader stock index fell 42.37 points, or 1.14%, to 3,685.84.
For Wednesday, Mr. Rekafort forecasts P51.95 to P52.15 per dollar, while traders expect local units to move between P52 and P52.20. – LWT Nobel