By Joann Santiago
MANILA, July 7 (PNA) — The sideways close of the Philippine peso to a greenback registered anew Tuesday as investors continue to move to safer haven in the midst of Greece’s debt crisis and the expected Federal Reserve rate hike within the year.
The local unit ended the day at Php45.17 from Php45.10 in the previous trading, which a trader said was in line with regional currencies.
Losses in the local bourse also affected currency trading during the day, the trader said.
The Philippine Stock Exchange index (PSEi) ended Tuesday with a 0.17 percent or 12.50 points drop to 7,442.65 points as investors pull-out funds on risk-off sentiment vis-a-vis the external developments.
Another factor is the widely-expected increase in the Federal Reserve’s key rates.
The Federal Open Market Committee (FOMC) will have its meeting on July 28-29, 2015 and the trader said a hike is being considered by the markets for the meeting.
“A hike is expected to happen this year but exact timing remain vague as Fed officials continue to weigh economic developments in the US,” the trader added.
The peso opened for the day at Php45.13, little changed from Php45.10 a day ago.
It ranged between Php45.18 and Php45.12 bringing the day’s average to Php45.14.
Volume of trade reached US$ 450.2 million, a little higher than the US$ 406.8 million Monday.
On Wednesday, the currency pair is seen to trade between a close range of Php45.10 and Php45.30. (PNA)