On Monday, the Peso maintained its value against the dollar.
As the conflict in the Middle East continues and the possibility of financial restrictions at home looms.
On Monday, the domestic currency remained unchanged at P56.84 against the US dollar, the same rate as Friday’s 56.84.fi
Data from the website of the Bankers Association of the Philippines indicated that there was a decrease.
On Monday, the peso began the session with a stronger value of P56.75 against the dollar. Throughout the day, it hit a high of P56.72 and a low of P56.87 in its performance against the US currency.
The amount of dollars exchanged increased to $950.5 million on Monday compared to $912.27 million on Friday.
According to a message on Viber from Michael L. Ricafort, Chief Economist at Rizal Commercial Banking Corp., the dollar has experienced a small decrease in value against major currencies due to recent developments in the Israel-Hamas conflict.
According to Reuters, the dollar remained strong on Monday, reaching 150-per-dollar, due to high US Treasury yields. However, the strength of the dollar did not significantly increase.
Investors are anticipating multiple events this week, such as the European Central Bank’s meeting, the release of US gross domestic product data, and the US Federal Reserve’s preferred indicator.flation gauge.
In addition, there is a potential for Israel’s military conflict with the Islamic militant organization Hamas to escalate into a larger regional issue.fl
The tension in markets is being caused by ICT, as Gaza was heavily bombarded by Israeli airstrikes on Monday, and the US has sent additional military resources to the area.
The dollar index fi
I modified a fraction to 106.23, while the euro decreased by 0.1% to $1.0586.
According to a trader’s email, the peso remained steady today as investors consider the likelihood of a rate increase by BSP (Bangko Sentral ng Pilipinas) before the end of the year.
The central bank is considering raising its policy rate by 25 basis points (bps) at their Nov. 16 meeting.
After experiencing an increase in inflation for two consecutive months, BSP Governor Eli M. Remolona, Jr. made a statement earlier this month.
The Monetary Board has maintained the interest rate at 6.25%, which is the highest it has been in 16 years, for the past four meetings. In order to decrease inflation, the board increased borrowing costs by 425 basis points between May 2022 and March 2023.flation.
On Tuesday, Mr. Ricafort predicts that the peso will fluctuate between P56.75 and P56.95 per dollar, while the trader anticipates a range of P56.70 to P56.90. – MJBP with Reuters