The peso dropped to one-week low against the US dollar on Wednesday as investors favored the greenback in anticipation of next week’s Federal Open Market Committee (FOMC) meeting.
The currency fell to P47.16 to $1, losing 4 centavos from its P47.12 close on Tuesday. Wednesday’s finish was the weakest since December 1 when the peso slid to P47.18.
“The dollar-peso exchange rate was slightly weaker as we get closer to the Fed meeting next week,” Jonathan Ravelas, Banco de Oro chief market strategist, said.
The US Federal Reserve’s FOMC is scheduled to meet on December 15 to 16, during which it is expected to announce an interest rate hike.
The peso opened at P47.14 to $1 on the Philippine Dealing System (PDS) before trading between P47.14 and P47.17.
Total volume transacted rose to P485.9 million from P453.6 million in the previous session.