Peso ends sideways vs USD

February 3, 2015 3:31 am 

MANILA, Feb. 2 — The peso closed sideways to a US dollar Monday tracking currencies in the region.

It ended the day at Php44.16 from Php44.08 Friday last week, which a trader said was partly due to anticipations for monetary policy easing in the US.

Some analysts forecast the Federal Reserve to start hiking the Fed’s key rates as early as the middle of 2015 as the world’s largest economy continue to show solid recovery and growth.

In its meeting last month, the Federal Open Market Committee (FOMC) said latest economic data show sustained growth of the US economy but monetary officials maintained the key rates at zero to 0.25 percent saying these levels remain appropriate.

With these developments, some analysts and traders said a hike in the Fed’s key rates is looming, thus, some investors are taking position.

”Profit-taking in PSEi also forced the peso to weaken,” the trader added referring to the withdrawals in the local bourse resulting to the index’ drop by 0.77 percent or 59.2 points to 7,630.71 points.

For the day, the peso started at Php44.16, weaker compared to the Php44.05 in the previous trading.

It traded between Php44.24 and Php44.14 bringing the day’s average at Php44.19.

Volume of trade reached US$ 525.7 million, lower than the US$ 733.6 million at the end of last week.

For this week, the trader expects the peso to trade sideways against the greenback ahead of Friday’s release of US’ non-farm payroll data for January 2015. (PNA)

LGI/JS/SSC

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