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Peso steady post-Fed minutes.
The Philippine peso remained steady against the US dollar following the release of the Federal Reserve’s meeting minutes on Wednesday.
The minutes revealed that the Fed is still cautious about the US economy’s recovery and is not yet ready to raise interest rates. This news was welcomed by investors, who have been concerned about the impact of higher rates on emerging markets like the Philippines.
The peso closed at 48.16 to the dollar on Wednesday, slightly up from its previous close of 48.18. This is a positive sign for the Philippine economy, which has been struggling with the impact of the COVID-19 pandemic.
The country’s central bank, the Bangko Sentral ng Pilipinas (BSP), has been taking steps to support the economy, including cutting interest rates and providing liquidity to banks. The BSP has also been buying government bonds to help finance the government’s response to the pandemic.
Despite these measures, the Philippine economy is expected to contract by around 8% this year, according to the International Monetary Fund. The country has been hit hard by the pandemic, with millions of people losing their jobs and businesses closing down.
However, there are signs of recovery, with the government gradually easing restrictions on movement and businesses. The BSP has also said that it expects the economy to start recovering in the second half of the year.
The steady peso is a positive sign for the Philippine economy, as it indicates that investors are confident in the country’s prospects. However, there are still challenges ahead, including the ongoing pandemic and the global economic slowdown.
The BSP will need to continue to take measures to support the economy, including providing liquidity to banks and ensuring that interest rates remain low. The government will also need to continue to provide support to businesses and workers who have been affected by the pandemic.
Overall, the steady peso is a positive sign for the Philippine economy, but there is still a long way to go before the country fully recovers from the impact of the pandemic.