Peso weakens vs dollar, closes at 55.51 to $1

The Philippine peso again swung to the weaker side of 55:$1, closing at 55:51:$1 on Feb. 27 as US inflation figures are expected to keep the US dollar “stronger for longer.”

On Monday, the local currency lost 70 centavos to the greenback, coming from 54:87:$1 in the previous trading day.

“We have learned that US inflation is proving much stickier and US activity firmer than we were led to believe in December and January,” ING Bank said in a commentary.

The Dutch company said the release on Feb. 24 of the January inflation data — 6.4 percent compared to 6.5 percent in December — bolstered arguments that the US Federal Reserve ‘needed to push [policy] rates higher and for longer.”

Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said there were also stronger-than-expected US economic data — such as new home sales as well as personal income and spending — that could also support further US Fed rate hikes and keep the dollar strong.