THE PESO ended almost flat against the dollar on Monday after the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.
The local unit closed at P56.491 per dollar, rising by less than a centavo from its P56.50 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session sharply weaker at P56.70 against the dollar, which was also its worst showing. Its intraday best was at P56.45 versus the greenback.
Dollars exchanged went down to $1.2 billion on Monday from $1.59 billion on Friday.
“The peso strengthened today following the hawkish policy remarks from the BSP at today’s meeting,” a trader said in an e-mail on Monday.
The BSP’s policy-setting Monetary Board kept the target reverse repurchase rate unchanged at a near 17-year high of 6.5% at its meeting on Monday, as expected by all 16 analysts in a BusinessWorld poll.
BSP Governor Eli M. Remolona, Jr. said they maintained their tight policy settings and remain ready to adjust rates as needed as risks to inflation remain tilted to the upside due to higher food and transport prices.
“My sense is that the upside risks mainly have become worse, so that would make us somewhat more hawkish than before,” Mr. Remolona said at a briefing.
“We’re feeling a bit more hawkish than before, so I would say we’re not going to do it (cut rates) by the third quarter, we may do it down the road,” he added.
The peso was also supported by slightly lower global crude prices on Monday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Philippine financial markets are closed for non-working days on Tuesday, April 9 (Day of Valor) and Wednesday, April 10 (Eid’l Fitr).
For Thursday, the trader said the peso could weaken versus the dollar following the March US consumer inflation report to be released on Wednesday.
The trader sees the peso moving between P56.40 and P56.65 per dollar on Thursday, while Mr. Ricafort expects it to range from P56.40 to P56.60. — A.M.C. Sy
