The peso will likely weaken against the dollar this week due to hawkish speeches from US Federal Reserve (Fed) officials amid generally mixed US economic data.

The local currency strengthened against the greenback to P51.89 last Friday, Feb. 23, 21 centavos stronger compared with the P52.10 logged the previous day, on the back of continued correction from the plunge early last week.

Week on week, the peso also ended stronger on Friday from the P52 finish last Feb. 15.

“The dollar might bounce back this week after last Friday’s drop, supported by likely hawkish speeches from various US Federal Reserve officials,” Guian Angelo S. Dumalagan, market economist of Land Bank of the Philippines (Landbank), said in an e-mail on Saturday.

Mr. Dumalagan said the “potentially upbeat” remarks from Fed officials Loretta J. Mester, John C. Williams and James B. Bullard may boost the dollar’s upward move, adding that the officials are expected to affirm views of more US interest rate hikes ahead.

According to Reuters, Mr. Williams said that the Fed should raise its rates “three to four times this year”, adding that the next rate hike should take place in the near future.

However, Mr. Bullard warned central bankers to be more careful in raising the rates too quickly this year as this could slow down the US economy too much. — Karl Angelo N. Vidal

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