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THE PESO may weaken against the dollar this week after the Philippine Central Bank (BSP) said it will bring down banks’ reserve requirement ratios (RRR) by March. The local unit closed unchanged at P57.94 per dollar on Friday, Bankers Association of the Philippines data showed.
According to the report, week on week, the peso weakened by 11 centavos from its P57.83 finish on February 14. The dollar was generally weaker early on Friday after US President Donald J. Trump hinted at a possible trade deal with China. Rizal Commercial Banking Corp. Michael L. Rica fort said in a Viber message. The greenback eventually rebounded later in the session.
The report said that the peso was initially stronger against the dollar on Friday following Mr. Trump’s comments on China, a trader likewise said, but weakened after the BSP’s announcement of the RRR cuts. The BSP on Friday said it will reduce the reserve requirement ratios for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 basis points (bps) to 5% from 7% effective March 28.
The report added that also weighing on the dollar was the more-than-expected drop in the US consumer sentiment index to a 15-month low. At the same time, inflation expectations surged as households worried about Mr. Trump’s steep and broad-based tariffs and their impact on their purchasing power.
The dollar index was last up 0.3% at 106.68. The dollar index was last up 0.3% at 106.68.
Report Source: Business World
According to the report, week on week, the peso weakened by 11 centavos from its P57.83 finish on February 14. The dollar was generally weaker early on Friday after US President Donald J. Trump hinted at a possible trade deal with China. Rizal Commercial Banking Corp. Michael L. Rica fort said in a Viber message. The greenback eventually rebounded later in the session.
The report said that the peso was initially stronger against the dollar on Friday following Mr. Trump’s comments on China, a trader likewise said, but weakened after the BSP’s announcement of the RRR cuts. The BSP on Friday said it will reduce the reserve requirement ratios for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 200 basis points (bps) to 5% from 7% effective March 28.
The report added that also weighing on the dollar was the more-than-expected drop in the US consumer sentiment index to a 15-month low. At the same time, inflation expectations surged as households worried about Mr. Trump’s steep and broad-based tariffs and their impact on their purchasing power.
The dollar index was last up 0.3% at 106.68. The dollar index was last up 0.3% at 106.68.
Report Source: Business World
