The Philippine peso slipped to a three‑week low on Wednesday as demand for the U.S. dollar intensified amid expectations of a more hawkish Federal Reserve and ongoing uncertainty surrounding the Middle East conflict.
Closing at 61.621 per dollar, the peso fell 0.261 centavos from Tuesday’s 61.36 rate, marking its weakest close since early June.
The currency opened the session at 61.55 per dollar, briefly reaching its intraday high, while its low for the day was recorded at 61.65.
Dollar‑peso trading volume declined to $1.575 billion, down from $1.629 billion the previous day.
A trader noted that overnight U.S. JOLTS data reinforced expectations of a tighter Fed, while safe‑haven demand persisted amid uncertainty over a potential U.S.–Iran peace agreement.
The peso’s decline mirrored movements in other regional currencies as the Japanese yen fell to new lows, according to the chief economist of a leading Philippine bank.
For Thursday, the peso is projected to trade within a range of 61.50 to 61.70 per dollar.
Market participants will watch upcoming U.S. labor data; a stronger‑than‑expected reading could push the pair toward the 61.75 resistance level, while immediate support is seen near 61.10.
The U.S. dollar surged to a 40‑year peak against the yen, driven by a sharp rise in Treasury yields ahead of key employment reports.
The dollar reached ¥162.84, surpassing the level that recently prompted Japanese authorities to intervene; it closed at ¥162.71, up 0.1% for the day.
U.S. job openings rose to 7.594 million in May, the highest figure since May 2024 and above the 7.30 million forecast, though analysts caution the survey’s low response rate.
Traders now assign a 67% probability to a Fed rate hike in September, a significant increase from the 20.5% probability recorded a month earlier.
