Peso weakens to P55.56 vs dollar, Fed rate cuts in doubt
The peso weakened further against the dollar on Tuesday due to reduced expectations of rate cuts from the US Federal Reserve this year.
The local currency closed at P55.56 per dollar, dropping by 14 centavos from its previous close of P55.42 on Monday.
Federal Reserve Bank of Minneapolis President Neel Kashkari reiterated his stance that major shifts in US trade and immigration policy are creating uncertainty for Fed officials to move on interest rates before September.
US President Donald Trump's recent tariff threats against the European Union have added to market uncertainty, leading to further fluctuations in the peso's value.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort expects the peso to range between P55.45 and P55.65 per dollar on Wednesday.
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