MODEL PORTFOLIO
THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
investment-ss-3
Reports
Policy rate views: Fed expected to do baby steps
DOWNLOAD
economy-ss-9
Economic Updates
Inflation Update: Faster but full-year average within target
DOWNLOAD
948 x 535 px AdobeStock_433552847
Reports
Monthly Economic Update: Waiting on Jay Powell
DOWNLOAD
View all Reports
Metrobank.com.ph How To Sign Up
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • Deficit spending remains unabated

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph How To Sign Up
Access Exclusive Content Login to Wealth Manager
Search
MODEL PORTFOLIO THE GIST
NEWS AND FEATURES
Global Philippines Fine Living
INSIGHTS
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
WEBINARS
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
DOWNLOADS
investment-ss-3
Reports
Policy rate views: Fed expected to do baby steps
September 18, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Inflation Update: Faster but full-year average within target
September 5, 2025 DOWNLOAD
948 x 535 px AdobeStock_433552847
Reports
Monthly Economic Update: Waiting on Jay Powell
September 2, 2025 DOWNLOAD
View all Reports
BusinessWorld 2 MIN READ

Peso weakens after hawkish Fed remarks, global oil price recovery

June 16, 2023By BusinessWorld
Related Articles
More research firms cut PH growth estimates after disappointing Q2 print August 17, 2023 T-bill, T-bond yields may rise before BSP meeting June 18, 2023 Rates of T-bills, bonds may drop further July 24, 2023

The peso weakened against the dollar on Thursday after the US Federal Reserve signaled its tightening cycle is far from over.

It closed at PHP 55.945, down by half-a-centavo from Wednesday’s PHP 55.94 finish, data from the Bankers Association of the Philippines website showed.

The currency opened at PHP 56 a dollar, weakened to as much as P56.10 and strengthened to as much as PHP 55.945.

Dollars traded fell to USD 729.5 million from USD 881.9 million a day earlier.

“The peso weakened after Fed Chairman Jerome H. Powell noted that US policy rates might remain elevated for a couple of years, defying market expectations of a possible rate cut later this year,” a trader said in an e-mail.

The peso was also dragged down by recovering global crude oil prices, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Oil prices stabilized on Thursday after a plunge on Wednesday, as the market balanced a jump in refinery runs at the world’s top crude importer China with a weak economic backdrop, according to Reuters.

Brent crude futures were up by 0.04% or 3 cents to USD 73.23 a barrel at 9:03 a.m. GMT. US West Texas Intermediate (WTI) crude rose by 0.01% or a cent to $68.28 a barrel.

Both benchmarks fell by 1.5% on Wednesday.

The Federal Reserve kept interest rates unchanged on Wednesday but signaled in new projections that borrowing costs might still need to rise by as much as half-a-percentage point by the end of the year, as the US central bank reacted to a stronger-than-expected economy and a slower decline in inflation, Reuters reported.

The Federal Open Market Committee paused its aggressive tightening campaign after hiking policy rates 10 times straight. It has raised borrowing costs by 500 basis points (bp) to 5-5.25%.

But at a press briefing at the end of the US central bank’s policy meeting, Mr. Powell signaled there might be two more 25-bp rate increases this year as US inflation remains sticky, and the economy is still robust.

The trader expects the peso to appreciate on Friday due to a potentially weaker US retail sales report.

The trader expects the peso to move between PHP 55.85 and PHP 56.05 a dollar, while Mr. Ricafort gave a forecast of PHP 55.85 to PHP 55.95. — Aaron Michael C. Sy

This article originally appeared on bworldonline.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Access this content:

If you are an existing investor, log in first to your Metrobank Wealth Manager account. ​

If you wish to start your wealth journey with us, click the “How To Sign Up” button. ​

Login HOW TO SIGN UP