Peso appreciates vs. dollar on Fed meeting minutes

The Philippine peso strengthened against its US counterpart for the second consecutive trading day on Thursday, after the minutes of the latest US Federal Reserve policy meeting was released.

The local currency gained 12 centavos to close Thursday at P52.225:$1 from P52.345:$1 Wednesday.

The Fed meeting minutes showed that there is room to be “patient” before interest rate tightening resumes, Land Bank of the Philippines market economist Guian Angelo Dumalagan said.

“The US Federal Reserve’s December policy meeting minutes supported the ‘patient monetary policy’ communicated by Fed chairman Jerome Powell last week, which caused an overall weakness of the dollar versus other currencies,” he said.

According to the minutes of the Federal Open Market Committee’s meeting on December 18 and 19, more rate hikes are expected but the Fed “can afford to be patient” before tightening policy by a “relatively limited amount.” —VDS, GMA News