By Joann Santiago
MANILA, July 28 (PNA) — The Philippine peso ended Tuesday sideways against the greenback a day after closing at its five-year low on back of investors’ anticipation on the result of US monetary officials’ meeting later this week.
It finished the day at 45.50 from 45.56 a day ago.
A trader said investors continued to weigh developments, especially since the US was set to report its second quarter output this week.
“It’s all a wait-and-see stance but some hope for a hike in the Fed rates this week because of better economic reports from the US,” a trader said.
For the day, the local currency opened at 45.50, slightly firmer than the 45.52 in the previous trading.
It moved between 45.48 and 45.52, resulting an average of 45.50.
Volume of trade reached USD 543.4 million, slightly lower than day-ago’s USD 583.7 million.
On Wednesday, the currency pair was seen to trade between 45.40 and 45.60.
ING Bank Manila Senior Economist Joey Cuyegkeng, in his latest market analysis, cited the three straight week weakness of the local unit against the US currency.
He said the performance was not unique as this was in line with other currencies in Asia.
He projects the local unit to “remain on the defensive” in the near-term due in part to “absence of monetary policy support.”
The peso is seen to weaken to 45.75 in the near term but Cuyegkeng said a consolidation would be possible until the local unit moved to next resistance level. (PNA)