Philippine peso plunges to 51.13 vs US dollar: Time to remit?
Manila: The Philippine peso weakened further against the dollar on Thursday (January 13, 2022) amid a big spike in local coronavirus infections fuelling economic uncertainty and a more hawkish US Fed.
The Philippine currency slid to 51.13 as of 6.30pm on Thursday (January 13, 2022 Manila time). It stood at P51.03 at 8.10 UTC — its highest intra-day level — before sliding further Thursday.
Health authorities in the Asian country recorded a 3,663% jump in COVID cases in the last 2 weeks.
The Bangko Sentral ng Pilipinas data showed the peso-dollar rate at 51.10 on Thursday. Against the UAE dirham, the Pnilippine peso stood at 13.9139 Thursday, based on BSP reference exchange rate bulletin.
The Asian currency has been weakening from 49.829 on December 21, 2021 and 50.88 on January 5, 2022, based on xe.com data.
What underpins the strong US dollar is the fact that the US Fed is tapering, reducing balance sheets, and raising rates.
The Asian currency slid as market participants factored in the hawkish statements from the minutes of the latest policy review of the US Fed released Wednesday.
The Fed in its policy review from Dec. 14 to 15 said it would speed up its tapering of asset purchases amid the improving US economy.
On Wednesday, the US central bank officials also said they expect up to three rate increases this year.
Investor worries on rising coronavirus infections had caused the peso to depreciate.
The US dollar posted a stellar 2021 performance, gaining against almost all currencies. The US dollar Index (DXY) strengthened 6.4%.
Investors expect the strong dollar to continue this year due to the Fed’s monetary tightening.