Peso weakens after Fed hints at policy tightening

The Philippine peso depreciated against the US dollar on Monday, closing at P48.695 per dollar, down from P48.43 on Friday.

This depreciation came after US Federal Reserve officials hinted at a possible earlier tightening of monetary policy.

On Sunday, analysts expected the peso to appreciate before the Bangko Sentral ng Pilipinas (BSP) meeting on Thursday, where benchmark interest rates are likely to remain unchanged due to market volatility following the Fed's comments.

The peso weakened by 73 centavos from a week earlier and lost five centavos compared to the previous day.

US central bank officials suggested rate increases could occur in 2023, leading to increased caution among players in the Philippine currency market.