The peso returned to P45:$1 territory on Friday, marking a fresh two-month high, as the market digested details of last month’s US Federal Reserve meeting.
The currency gained 24 centavos to finish at P45.87 to the US dollar from P46.11 on Thursday. Friday’s close was the peso’s strongest since August 10’s P45.75.
The research arm of Metropolitan Bank and Trust Co. (Metrobank) said the latest Federal Open Market Committee (FOMC) minutes showed the US central bank was in wait-and-see mode.
“Notable was that ‘several members’ thought downside risks to inflation from strong USD and low oil prices ‘could persist, and thus delay or diminish the expected upturn in inflation,’” Metrobank Research noted.
It said the main takeaways from the minutes were FOMC concerns on increasing risks to growth and inflation, but with a lift-off still expected this year.
The peso opened at P46.00 to $1 at the Philippine Dealing System on Friday before trading between P46.00 and P46.85.
Total volume transacted rose to $1.049 billion from $936.7 million in previous trade.