By Joann Santiago
MANILA, Aug 5 (PNA) — A statement by Federal Reserve Bank of Atlanta President Dennis Lockhart about a possible hike in Fed rates in September ended the Philippine peso’s two-day rally Wednesday.
The local unit ended the day at 45.74, still a little over five-year low, from the 45.61 finish Tuesday.
A trader said the US currency gained grounds following the release of a report by The Wall Street Journal quoting Lockhart who said that he personally think that it is now the right time to hike the Fed rates.
He was quoted as saying that “only a significant deterioration” of recovery in the US economy would prevent an increase in the rates.
”This boosted markets’ anticipation and boosted the dollar,” the trader said.
The peso opened the day at 45.72, little moved from the 45.75 a day ago.
It traded between 45.77 and 45.70, resulting an average of 45.73.
Volume of trade reached USD 639.6 million, a little lower than the USD 683.4 million a day ago.
For Thursday, the currency pair is seen to trade between 45.70 and 45.90. (PNA)