"The peso Tuesday slipped back to the 42-per-dollar level before closing at 41.98 as the market locked in gains while scaling back expectations of aggressive interest rate cuts by the US Federal Reserve, currency traders said.
Traders added that cash remittances from overseas Filipino workers for Christmas spending had thinned out this week because bulk of the money had been frontloaded in previous weeks.
The peso reached an intraday low of 42.08 to the dollar and a high of 41.80. At the end of trading it was down from Monday’s closing rate of 41.655 to the greenback.
The peso’s downward correction for the second trading session was expected after almost two weeks of rising to nearly eight-year highs, traders said.
Banco de Oro-EPCI Bank strategist Jonathan Ravelas said the peso was pulled down by a knee-jerk reaction to the dollar’s rebound against major currencies and by expectations that the US Federal Reserve would veer away from aggressive monetary easing. "
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