Peso ends flat ahead of Fed meeting

THE PESO closed nearly flat against the greenback on Tuesday as investors wait for the result of the US Federal Reserve’s policy meeting.

The local unit finished trading at P48.08 per dollar, almost unchanged from its P48.079 close on Monday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P48.07 per dollar. Its weakest showing was at P48.085, while its intraday best was at P48.05 against the greenback.

Some $1.0146 billion changed hands on Tuesday, up from the $763.05 million seen on Monday.

The trader said in a text message that the peso was steady as investors stayed on the sidelines ahead of the Fed’s policy meeting.

Fed Chairman Jerome Powell earlier said an interest rate hike will not come anytime soon as the central bank continues to provide support to the world’s largest economy.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said investors preferred the safe-haven dollar over the local unit amid worries over the delayed approval of a new stimulus package in the United States.

US President Joseph R. Biden said he is open to negotiate tweaks on the $1.9-trillion relief proposal to make it a more bipartisan deal, Bloomberg reported.

For today, the trader expects the peso to move from P48 to P48.10 versus the dollar while Mr. Ricafort sees it trading within a tighter band of P48.05 to P48.10. — LWTN

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