PH currency hits P50:$1 level
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Tue, 30 Jul 2019 16:31:17 +0000
THE Philippine peso recorded its strongest level so far against the US dollar this year as the expected US Federal Reserve interest rate cut helped the local currency to return to P50:$1 on Tuesday.
The peso, which opened at P51.02 against the greenback, gained 20 centavos to close at P50.89, its strongest in more than 18 months, or since its P50.84:$1 finish on January 26, 2018.
Union Bank of the Philippines chief economist Carlo Asuncion credited the strength to expectations that the American central bank would cut its rate on Wednesday.
“An accommodative US monetary policy usually strengthen emerging markets’ currencies….” Asuncion told The Manila Times.
The Federal Open Market Committee is scheduled to hold its two-day meeting on July 30 and 31 (Washington time).
The government is expecting the peso to end the year at between P51 and 53 level against the greenback, according to the interagency Development Budget Coordination Committee.
Last year, the peso ended at P52.58 versus the dollar, sharply down from its 2017 close of P49.93:$1.