Fed action to weaken currencies – BSP

THE Bangko Sentral ng Pilipinas (BSP) renewed its commitment to monitoring the latest developments in the foreign exchange market following its assessment that the decision of the United States Federal Reserve to keep its interest rates near zero could result in a stronger dollar and may impact regional currencies.

Private analysts also shared the view that the Fed action will create upward pressures on the local currency, and may be factored into the BSP’s policy decisions next year.