BSP: Dollar strengthens after Fed signals delay in rate cut

By Anna Leah Gonzales

May 21, 2024, 3:30 pm

<p>BSP Governor Eli Remolona Jr. <em>(File photo)</em></p>

BSP Governor Eli Remolona Jr. (File photo)

MANILA – Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the dollar strengthened following the Federal Reserve's statement to delay easing of interest rates.

Remolona made the statement after the peso further depreciated and breached the 58 to a dollar level on Tuesday morning's trading.

"The peso weakened beyond 58 to the US dollar today, in line with other currencies in the region," he said.

"The dollar continued to strengthen as the Federal Reserve signaled delay in cutting interest rates," he added.

Fed officials earlier said a rate cut will be on hold until inflation returns to their 2-percent target.

Remolona assured that the BSP continues to monitor the foreign exchange market but allows the market to function without aiming to protect a certain exchange rate.

"Nonetheless, the BSP will participate in the market when necessary to smoothen excessive volatility and restore order during periods of stress," he said. (PNA)