Peso slides amid surging $

US dollar strengthened against major global currencies recently because of hawkish signals from some US Federal Reserve officials

September 6, 2022

The local currency closed at a record low against the dollar after dipping for the third straight day, by 0.229 or 0.4 percent to close at 56.999, with an intraday downslide to 57 per dollar.

It opened at 56.85, reached a high of 57, and hit a low of 56.80, to average at 56.941 on a volume of $976.45 million.

“US dollar strengthened against major global currencies recently because of hawkish signals from some US Federal Reserve officials, especially since the Fed’s yearly Jackson Hole Symposium more than a week ago signaled higher rates to linger as part of the effort to bring down elevated US inflation from among 40-year highs recently (at 8.5 percent in July 2022, after the 9.1 percent in June 2022),” Rizal Commercial Banking Corp. chief economist Michael Ricafort told Daily Tribune.

Positive swing

Analysts mentioned positive factors offsetting the downswing include easing global crude oil prices that had near seven-month lows (again already erased all the increase since the Russia-Ukraine war started on 24 February; Nymex crude oil benchmark now at $88 per barrel levels, against $92 at the start of the said war.

“The P420.4 billion Retail Treasury Bond issuance, with a settlement date on 7 September 2022 siphoned off some of the excess liquidity in the financial system and to add to the supply of government securities in the market; but could entail some foreign investments,” Ricafort added.


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