Peso weakens vs dollar

The peso dropped versus the dollar on Thursday due to mixed signals from US Federal Reserve officials.

The local unit closed at PHP 55.485 per dollar on Thursday, down by 9.5 centavos from its PHP 55.39 finish on Wednesday, based on Bankers Association of the Philippines data.

The peso opened Thursday’s session weaker at PHP 55.45 against the dollar. Its intraday best was at PHP 55.37, while its worst showing was at PHP 55.51 versus the greenback.

Dollars exchanged went up to USD 1.27 billion on Thursday from $1.1 billion on Wednesday.

The peso weakened on Thursday due to mixed signals from Fed officials, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

While US central bank officials on Wednesday sent mixed messages, investors still focused on comments made on Tuesday by Fed Governor Christopher Waller, an influential and previously hawkish voice at the bank. Mr. Waller had said rate cuts could begin in months if inflation keeps easing, Reuters reported.

Fed Chair Jerome H. Powell is also due to speak on Friday and expected to offer crucial insights into the Fed’s policy approach ahead of their December meeting.

The peso was dragged down by a stronger dollar and rising global crude oil prices, Mr. Ricafort added.

“The peso weakened after the significant upward revision in the third-quarter US GDP (gross domestic product) growth from 4.9% to 5.2%,” a trader said via text.

For Friday, the trader said the peso could appreciate against the dollar ahead of a likely softer US producer inflation report.

The trader expects the peso to move between PHP 55.35 and P55.60 per dollar, while Mr. Ricafort sees it ranging from PHP 55.35 to PHP 55.55. — AMCS with Reuters