Peso back yet again past 56:$1 level

MANILA  -The Philippine peso has yet again breached the 56:$1 threshold, losing 28 centavos to close at 56:07:$1 on May 15 ahead of a Monetary Board policy meeting on May 18 that many analysts believe would show a pause in interest rate hikes.

The local currency traded at as weak as 56.09 against the US dollar before ending the day at its weakest in almost a month or since closing at 56.21:$1 last April 19.

The peso depreciated for the third day in a row since closing at 55.67:$1 on May 10.

Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said the peso weakened in the wake of strong signals about a possible pause in the policy rates of the Bangko Sentral ng Pilipinas.

Ricafort said the depreciation happened also amid recent signals on a possible reduction in BS policy rates as early as August if inflation continues to ease.