Peso hits 15-week low at P50.37 before rate decision

“The peso actually depreciated on account of pronouncements of some Fed officials that even if inflation is still off-target, the fact that labor market conditions are becoming tighter, that would in effect be transmitted in terms of higher inflation. As the labor market continues to tighten, there would be some pressure on inflation moving forward,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo told reporters on Thursday.

Guinigundo said because of that, the market thought that is a definitive clue that the Fed they will continue tightening monetary policy in the US--that means one more time before end of year, and two to three times in 2018.