PESO WEAKENS BUT STAYS AT P57:$ LEVEL

THE peso closed lower on Monday but still managed to stay in the P57:$1 level for a second straight trading day.

At P57.28 to a dollar, the currency was down five centavos from Friday.

Trading opened at P57.30 and ranged from P57.22 to P57.39 throughout the day. Total volume hit $720.63 million, lower than the previous session’s $820.15 million.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the peso-dollar rate remained relatively stable after having fallen to a record low of P59:$1 last month.

“The relatively stable/stronger peso exchange rate is also partly brought about by signals/ reiterations recently on local policy rate hikes of as much as +0.75 on the next rate-setting meeting on November 17, 2022,” he said.

Continued weakness “could still increase the possibility of further local policy rate hike/s that could also possibly match future (US) Fed rate hikes if inflation remains high,” Ricafort added.