Peso sags on US rate hike concerns

 

The peso extended a losing streak against the US dollar for the third consecutive trading day Monday, tracking regional weakness ahead of the Fed meeting this week.

The local currency lost 20 centavos to P46.850:$1 from 46.650 Friday.

"Peso tracked broad regional currency weakness in a week that features the FOMC (Federal Open Market Committee) meeting where the Fed is seen to hint at a possible hike as early as the June meeting," Nicholas Antonio Mapa, associate economist at the Bank of the Philippine Islands (BPI), noted in an email to GMA News Online.

"Peso should trade sideways with a depreciation bias ahead of the Fed meeting," Mapa added.

The Fed is scheduled to meet on April 26 and 27 to discuss whether or not to raise interest rates in the world's largest economy

"Policymakers are expected to hold interest rates steady when they meet this week, but may tweak their description of the economic outlook to reflect more benign conditions, leaving the path open for future rate rises," Reuters reported. – VDS, GMA News