Peso sags to P44.52

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The peso weakened further against the US dollar on Tuesday as investors took greater interest in the greenback, with sentiment still influenced by the United States Federal Reserve’s policy decision to keep its key interest rates near zero last week.

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The local currency opened at P44.55 to $1 on the Philippine Dealing System (PDS) before trading between P44.51 and P44.60. It closed at P44.52, a four-month low.

Tuesday’s rate marks the weakest level of peso since May 2 when the peso traded at P44.50 per dollar.

The peso shed 5 centavos from the P44.47 close on Monday. Volume transacted on the PDS fell to $666.200 million from $757.800 million traded Monday.

Jonathan Ravelas, chief market strategist at Banco De Oro, said investors took positions in the more attractive greenback.

At the conclusion of the September 16 to 17 meeting of the Federal Open Market Committee (FOMC), the Fed pledged to keep interest rates near zero for a “considerable time” but indicated it could raise borrowing costs faster than expected when it starts moving.

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