The peso dropped further against the US dollar at the start of the trading week, hitting a fresh six-year low ahead of a Federal Open Market Committee (FOMC) meeting later this week.
The currency closed at P47.34 to $1 on Monday, losing 11 centavos from Friday’s P47.23. It was the weakest since November 6, 2009 when the peso slid to P47.20 against the greenback.
“Part of the dollar’s strength was the expected rate hike in the US,” said Emilio Neri Jr., Bank of the Philippine Islands vice president and lead economist.
A peso recovery, Neri said, could follow once the FOMC announces the outcome of its December 15-16 policy meeting, widely expected to be an interest rate hike.
The peso opened at P47.30 to $1 on the Philippine Dealing System (PDS) before trading between P47.30 and P47.37. Total volume transacted rose to P514 million from P486.7 million previously.