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More peso appreciation expected |
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Tuesday, 31 January 2012 |
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THE PESO may further strengthen against the dollar this week after the US Federal Reserve last week said it would keep its monetary policy loose until 2014 to support the recovering US economy.
Developments in the euro zone, however, will also dictate how the peso will perform against the greenback.
The peso surged by 42.5 centavos to finish at P42.85 per dollar last week against its P43.275-per-dollar close the week before. Dealers said the peso is seen trading at P42.30 to P43.10 per dollar this week.
“Market players’ risk appetite will continue to lift the peso and other Asian currencies against the dollar [this] week in reaction to the US Fed’s announcement,” a trader said in a phone interview last week.
With the Fed’s key rate at near zero, funds are expected to continue looking for higher returns in emerging markets such as the Philippines.
In Europe, leaders are scheduled to meet Monday to approve a new pact to impose budget rules on members. Greece, meanwhile, said it was nearing an agreement with private creditors on a debt swap. -- Business World Online / Finance
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