Peso extends losing streak for fourth straight trading day

The Philippine peso weakened against the greenback for the fourth straight trading day on Monday, ahead of the policy-setting meetings both in the country and in the United States later this week.

The local currency shed 5.1 centavos to close at P56.866:$1 from last Friday’s finish of P56.815:$1.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, the market expects a pause in both the US and local policy rates when officials meet later this week.

The Federal Open Market Committee (FOMC) is scheduled to meet on September 19 and 20, while the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) is set to discuss policy on Thursday, September 21.

“However, the peso exchange rate still somewhat supported vs. the US dollar recently… as signaled by some local monetary authorities last month about the option of intervention in the local market if necessary, in an effort to stabilize the peso exchange rate,” Ricafort said.

Year-to-date, the Philippine peso has depreciated by P1.111 or 2% from its close of P55.755:$1 at the last trading day of 2022. — RSJ, GMA Integrated News