Friday, September 29, 2023
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Special Pages
    • Pets
    • Tech
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • On the Road
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Cravings
    • Environment & Sustainability
    • Agriculture
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
    • Gallery
      • Photos
      • Videos
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Special Pages
    • Pets
    • Tech
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • On the Road
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Cravings
    • Environment & Sustainability
    • Agriculture
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
    • Gallery
      • Photos
      • Videos
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business

Peso sinks to new record low of 58.49 a dollar on Fed rate increase

Julito G. RadabyJulito G. Rada
September 22, 2022, 9:20 pm
in Business, Money
Reading Time: 3 mins read
A A
Share on FacebookShare on TwitterShare on Email

The peso fell to a new record low against the US dollar Thursday following a 75-basis-point hike by the US Federal Reserve to tame the persistently high inflation.

The local currency lost 49 centavos to close at an all-time low of 58.49, down from 58.00 on Wednesday. The drop followed a 52-centavo decline on Wednesday. Total trading volume reached $1.514 billion Thursday, up from $1.051 billion a day earlier.

Interest rate in the US now ranges from 3 percent to 3.25 percent, the highest since 2008. The Fed resorted to big rate increases to rein in inflation that reached 8.3 percent year-on-year in August, above the Fed’s benchmark target of 2 percent.

Michael Ricafort, chief economist of Rizal Commercial Banking Corp., said the next resistance level for the peso would be 58.50 to 58.75 against the greenback. He said the Fed provided guidance on further interest rate hikes that would bring it to 4.40 percent by end-2022 and 4.60 percent in 2023 from 3.25 percent.

The peso depreciated by 14.7 percent against the US dollar or a total of P7.491 since closing at 50.999 in 2021, said Ricafort.

He said Fed rate estimates were rising in recent months, reflecting more aggressive adjustments in an effort to reduce US inflation from the 40-year high of 8.3 percent in August, after reaching an immediate high of 9.1 percent in June.

“Thus, the said Fed dot plot projections suggest a fourth straight Fed rate hike of +0.75 on Nov. 2, 2022,” Ricafort said.

Ricafort said the higher Fed rates led to stronger US dollar against major currencies, including the peso, on wider interest rate differentials in favor of the US currency.

BSP Deputy Governor Francisco Dakila remained unfazed by the peso’s depreciation, saying the movement was expected as the US dollar gained strength “given the US Fed tightening.” He said other currencies in the region were also weakening against the greenback.

“With the policy adjustment now, as well as the expected seasonal inflows from remittances especially during the Christmas season, there should be a lot of earnings available for repatriation from overseas Filipino workers [that should support the peso],” Dakila said.

The BSP on Thursday hiked by another 50 basis points to 4.25 percent the overnight borrowing rate to rein in the elevated inflation and support the value of the peso.

Bank of the Philippine Islands said the peso depreciation might continue in the medium term as imports would likely increase further on the recovery of the economy.

“Dollar demand may pick up and keep the exchange rate above the 56 level. Meanwhile, the possibility of tighter dollar supply may contribute further to peso depreciation. The Federal Reserve is expected to continue hiking aggressively this year,” the bank said.

“If the BSP continues to hike by 50 bps only in the last two meetings of the year, the differential with the US rate will go back to where it was in July when the BSP did an off-cycle hike. In this scenario, the peso may continue to depreciate and may even breach the 59 level. This may lead to another inter-meeting hike given the need to temper the depreciation of the peso,” BPI said.

Tags: Inflationinterest ratePESOUS dollarUS Federal Reserve
ADVERTISEMENT
Julito G. Rada

Julito G. Rada

Related Posts

ADB approves capital management reforms to unlock $100 billion in new funding

byManila Standard Business
September 29, 2023, 9:51 am
0
8
ADB approves capital management reforms to unlock $100 billion in new funding

The Asian Development Bank (ADB) said Friday it approved capital management reforms that unlock $100 billion in new funding capacity...

Read more

Cebu Pacific eyes Boeing planes as Airbus engine issue affects fleet

byDarwin G. Amojelar
September 28, 2023, 7:35 pm
0
8
No-hassle travel hacks with budget-friendly accommodation

Cebu Air Inc., the operator of low-cost carrier Cebu Pacific, said Thursday it plans to purchase narrow-body aircraft from US...

Read more

PH improves 3 spots to rank 56th in global innovation index

byOthel V. Campos
September 28, 2023, 7:30 pm
0
8
PH ranks 9th globally in IP innovation ranking

The Philippines climbed three spots to rank 56th in the Global Innovation Index (GII) 2023 out of 132 economies included...

Read more

Foreign tourists reached nearly 4m as of Sept. 27 in line with 2024 goal

byOthel V. Campos
September 28, 2023, 7:25 pm
0
8
CONCEPCION INDUSTRIAL CORPORATION: Notice of the Annual Stockholders’ Meeting

Department of Tourism (DOT) Secretary Christina Frasco said Thursday international visitor arrivals reached 3.97 million as of Sept. 27, representing...

Read more

SEC streamlines disclosure requirements

byJenniffer B. Austria
September 28, 2023, 7:20 pm
0
8
SEC files charges against four firms soliciting investments

The Securities and Exchange Commission (SEC) eased the disclosure requirements for companies seeking to raise funds through the capital market....

Read more

Vivant unit signs contract with Bataan solar developer

byAlena Mae S. Flores
September 28, 2023, 7:15 pm
0
8
Vivant unit signs contract with Bataan solar developer

COREnergy Inc., a wholly-owned subsidiary of Vivant Energy Corp., signed a 20-year power supply agreement with Samal Solar Renewable Energy...

Read more

Print Edition

View More

Recent Posts

  • ADB approves capital management reforms to unlock $100 billion in new funding
  • House okays P5.768-t post-pandemic budget
  • ‘OVP intel funds invalid but not impeachment ground’
  • Q3 pro-admin sentiment down to 43%—survey
  • Congress passes several crucial priority measures
  • Marcos, Macron tackle WPS security issues, bilateral ties
  • Socorro ‘cult’ leader held in contempt
  • P3.6-b shabu seized in Pampanga

Advertisement

Latest News

Marcos, Macron tackle WPS security issues, bilateral ties

byCharles Dantesand1 others
September 29, 2023, 12:50 am
0
8
Marcos, Macron tackle WPS security issues, bilateral ties

President Ferdinand Marcos Jr. and French President Emmanuel Macron discussed security issues in the West Philippine Sea (WPS) in a...

Read more

Socorro ‘cult’ leader held in contempt

byMacon Ramos-Araneta
September 29, 2023, 12:45 am
0
8
Marcos, Macron tackle WPS security issues, bilateral ties

A Senate committee on Thursday cited Socorro Bayanihan Services Inc. (SBSI) leader Jey Rence Quilario, also known as Senior Agila,...

Read more

P3.6-b shabu seized in Pampanga

byRey E. Requejoand1 others
September 29, 2023, 12:40 am
0
8
Southwoods nails Seniors’ Fil golf crown

Law enforcement agencies have seized P3.6 billion worth of methamphetamine hydrochloride or "shabu" in a warehouse in Mexico City, Pampanga,...

Read more

Meta putting AI in smart glasses

byAFP
September 29, 2023, 12:35 am
0
8
Facebook-parent Meta appeals UK ruling on Giphy tie-up

Meta chief Mark Zuckerberg on Wednesday said the tech giant is putting artificial intelligence into digital assistants and smart glasses...

Read more

Ateneo remains top PH school in global rankings

byGabriellea B. Pariño
September 29, 2023, 12:30 am
0
8
Ateneo rated as country’s top learning institution

The Ateneo de Manila University remained the top school in the Philippines, according to the latest global rankings published by...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Pets
  • Tech
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Cravings
  • Environment & Sustainability
  • Agriculture
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Gallery
    • Photos
    • Videos
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App