The first coordinated US-Japan currency intervention in decades has jolted foreign exchange markets, prompting investors to reassess their strategies.

Explore what is driving the movements in the local currency.

A much stronger US dollar, which may briefly go beyond PHP 58 level this year, may affect the country’s economic growth. However, the domestic-driven economy of the Philippines and overseas remittances and BPO flows could soften the blow.

The US Fed hiked rates by 25 basis points, inflation is on a downward trajectory, the markets have priced in less aggressive moves by the Fed. Where will we see the peso going now?

For those watching the movement of the dollar-peso exchange rate, the recent strengthening of the peso, while desirable for some, may be fleeting.

Will the peso depreciate even more before the year is out? Metrobank’s foreign exchange division head gives us some clarity.