Peso up ahead of Powell speech
THE PESO bounced back on Tuesday as the dollar weakened across major currencies ahead of the testimony of US Federal Reserve Chairman Jerome Powell and following the stronger remittance data released Monday.
The local unit ended Tuesday’s session at P53.39 against the greenback, 14 centavos stronger than the P53.53-per-dollar finish on Monday.
The peso strengthened a tad immediately on Tuesday as it opened the session at P53.50 versus the dollar. Its intraday low stood at P53.53, while its best showing was at P53.38 against the greenback.
Dollars traded climbed to $504.59 million from the $290.75 million that exchanged hands the previous session.
A foreign exchange trader said the peso finally moved stronger against the greenback as investors wait for the testimony of Mr. Powell at the Capitol Hill.
“Finally, the peso moved stronger on Tuesday ahead of the Powell Senate committee hearing,” the trader said in a phone interview Tuesday.
Mr. Powell will testify before the Senate Banking Committee as he will discuss the monetary policy of the Fed, with the market anticipating for two more rate hikes amid the continued expansion of the American economy.
“The dollar weakened across the board against all major currencies, including the peso, ahead of that hearing,” the trader said.
Meanwhile, Michael L. Ricafort, economist at Rizal Commercial Banking Corp., attributed strengthening of the peso to the good remittances data released on Monday.
Money sent home by Filipinos abroad amounted to $2.469 billion in May, the biggest since December 2017’s record-high $2.741 billion, according to central bank data.
For Wednesday, the first trader expects the peso to move between P53.25 and P53.45, while the other gave a P53.40-P53.60 range amid likely hawkish cues Mr. Powell’s testimony. •