Peso softens amid uncertainties about BSP rate increase

The Philippine peso softened against the US dollar anew on Wednesday, as the foreign exchange market remained uncertain about the Bangko Sentral ng Pilipinas’ decision (BSP) to raise policy rates.

The local currency lost 4 centavos to close at P53.48:$1 from P53.44:$1 on Tuesday.

Wednesday’s close—the same as Monday’s closing rate—is the weakest since the peso has plumbed in over 11 years since it closed at P53.55 on June 29, 2006.

“The peso closed weaker than yesterday amid uncertainties about the local central bank rate decision today ...” Guian Angelo Dumalagan, market economist at Land Bank of the Philippines, said.

The BSP raised its policy rates by 25 basis points.

“Due to a lack of clear consensus on the most probable move from the BSP’s move today, the market might price in the rate decision in tomorrow’s trade,” Dumalagan said. —VDS, GMA News