Peso back in 51:$1 territory as Fed signals December rate hike

The Philippine peso slipped on Thursday to the P51-to-a dollar level after the US Federal Reserve issued a hawkish statement signaling another interest rate hike at the end of the year.

The local currency shed 9.5 centavos to close at P51.080:$1 from 50.985 on Wednesday.

“As expected, the peso will weaken following the Fed’s statement of a possible rate hike by December and also its announcement on balance sheet adjustments,” a foreign exchange trader said.

According to a report by Reuters, the dollar got a lift from the Fed announcement that it still expects one more interest rate hike by the end of the year and would begin in October to trim its massive holding of US Treasury bonds and mortgage-backed securities. — Ted Cordero/VDS, GMA News