Peso dips on news of slight increase in inflation rate

MANILA, Philippines—The peso fell on Tuesday after the government reported that inflation minimally rose in January.

The local currency closed at 40.645 against the US dollar, down by 5 centavos from the Monday’s finish of 40.595:$1.

Intraday high hit 40.62:$1, while intraday low settled at 40.65:$1.

Volume of trade amounted to $740.4 million from $938.5 million previously.

The depreciation of the peso came following the release of a report showing that inflation settled at 3 percent in January, faster than the 2.9 percent registered the previous month.

Some economists said inflation might accelerate further in the coming months, although would likely remain within the government’s target band of 3 to 5 percent.

Traders said inflation, which would reduce the value of investment yields, would be a key factor to be considered by fund owners in making investment decisions.

For its part, the BSP said inflation would likely remain below 4 percent this year but added it would implement measures should existing factors affecting prices change.

Follow Us

Recent Stories:

• Philex still keen on teaming up with China firm for SC 72
• Grandfather rule: A test for public utilities?
• Stocks continue to gain
• Nestle expands Singapore R&D amid Asia market growth
• Recovering Dubai faces billions of maturing debt
• Peso in slight dip as market weighs Japan central bank’s heavy bond buying
• Workers strike at Coke bottling plant in Laguna, defy court’s TRO
• PH stock index continues gain in second straight session
• Aquino talks about PH’s ‘bright future’ in CNA documentary Wednesday night
• Philippines, Brazil agree on new flights

Short URL: http://business.inquirer.net/?p=106181

Tags: Business , economy , Foreign Exchange , Inflation , Philippine peso , US dollar