The Philippine peso flirted with a new record low on Wednesday morning, January 14, as the US dollar rebounded after fresh data showed US inflation had steadied in December.
The latest US inflation data reinforced expectations that the Federal Reserve would keep interest rates unchanged despite pressure from the White House.
The local currency opened the session at 59.38 against the greenback before posting an intraday low of 59.425 during the morning trade – testing the record-low finish of 59.355 set last Jan. 7.
The US consumer price index rose 2.7 percent last month, unchanged from November and in line with expectations.
With economists divided over whether inflation in America has already peaked, Reuters reported that the Fed is widely expected to keep rates steady at its meeting this month. (Ian Nicolas P. Cigaral © Philippine Daily Inquirer)
