The Philippine peso edged higher against the U.S. dollar on Wednesday, gaining 2.4 centavos to close at P61.686 per dollar, up from P61.71 the previous day.
Trading opened at P61.60, peaked at P61.57 and fell to a low of P61.695 during the session.
Dollar‑peso transaction volume rose to $1.146 billion, compared with $995.28 million recorded earlier.
A trader noted that softer‑than‑expected U.S. consumer inflation data reduced expectations of an aggressive Federal Reserve stance, prompting a modest appreciation of the peso and largely sideways market movement.
The dollar also weakened after the U.S. president withdrew a previously threatened 20% surcharge on cargo shipments through the Strait of Hormuz, a development highlighted by a chief economist.
Looking ahead, the trader projected the peso could trade between P61.50 and P61.75 on Thursday, while the chief economist anticipated a range of P61.50 to P61.70.
The dollar steadied after a prior decline, as the soft inflation figures dampened near‑term rate‑hike expectations despite lingering concerns over rising oil prices.
The U.S. dollar index held at 100.9, after slipping 0.4% in the previous session—its most significant pullback in nearly two weeks—and retreating from early‑July peaks.
U.S. consumer inflation for June slowed to an annual 3.5%, with the headline CPI dropping 0.4% month‑over‑month, marking the first decline since April 2020 as energy costs fell.
U.S. Treasury yields declined, with two‑year notes falling nine basis points from a 16‑month high.
Market participants now assign roughly a 65% probability to a September rate hike, effectively ruling out additional tightening later this month.
In the Gulf region, renewed hostilities in the Iran conflict lifted oil prices to one‑month highs, sustaining inflationary pressures.
