By Joann Santiago
MANILA, Sept. 7 (PNA) — The Philippine peso closed Monday at 46.92, its weakest to a dollar since June 2010 on back of expectations for a hike in the Federal Reserve rates this month.
A trader cited that although non-farm payroll in the US last August failed to meet markets’ expectations, there had been strings of positive economic news that boded well for a rate increase.
”Risk sentiment was high because some analysts have earlier raised the possibility of a rate hike next week,” a trader said.
The Federal Open Market Committee (FOMC) will have its next meeting on Sept. 16-17 and some analysts project an annoucement of rate hike after the two-day meeting.
Thus, the peso started the week at 46.95, a depreciation compared to its 46.76 opening Friday last week.
It traded between its opening level and 46.86 resulting in an average of 46.91.
Volume of trade reached USD 569.3 million, slightly higher than the USD 393.4 million in the previous trading.
For Tuesday, the currency pair is seen to trade between 46.80 and 47.00. (PNA)