The peso continued to weaken against the US dollar on Tuesday as investors took positions ahead of upcoming United States Federal Open Market Committee (FOMC) meeting.
The local currency opened at P44.75 to $1 on the Philippine Dealing System (PDS) before trading between P44.71 and P44.87 .
The unit closed at P44.71, losing 4 centavos from the P44.67 close on Monday.
Total volume transacted on the PDS rose to $500.200 million from $290.400 million traded Monday. An analyst traced the weaker peso to the investors’ anticipation on the outcome of FOMC meeting schedule on Wednesday (Thursday Manila time).
“We were able to outperform the rest of the region in the past few days but profit taking has finally caught up with the peso,” said Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands.
Mapa noted that foreign players’ unloading of their stocks and bonds ahead of the FOMC meeting forced the peso to depreciate on Tuesday.
“Could be more of this ahead of the FOMC and possibly towards the close of the year, with overseas Filipinos remittances helping to counter depreciating trend,” he said.