THE PHILIPPINE PESO is expected to trade narrowly against the dollar this week as investors await signals from the US Federal Reserve’s policy meeting.
“The dollar-peso closed a bit higher on Friday but was mostly sideways as players anticipate the Federal Open Market Committee (FOMC) meeting and lack of strong catalysts,” a trader said in a phone interview.
It closed at P58.16 a dollar on Friday, down 3.5 centavos from its P58.125 finish on Thursday, according to Bankers Association of the Philippines data posted on its website. Week on week, the peso weakened by 8 centavos from P58.24 on Oct. 10.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso was dragged by a stronger dollar as investors sought safe-haven assets amid rising US-China trade tensions.
This week, the local currency is expected to remain range-bound, with investors cautious ahead of a possible Fed rate cut.
The trader said the peso could move from P57.90 to P58.30 a dollar, while Mr. Ricafort expects a slightly wider band of P57.90 to P58.35. —AMCS
