The Philippine peso continued to strengthen against the dollar on Wednesday, as the market anticipated further easing of key rates in the United States.
The local currency gained 6 centavos to close at P52.20:$1 versus Tuesday’s P52.26:$1.
“The peso strengthened prior to expectations of a 25-basis point US interest rate cut from the Federal Reserve monetary policy meeting overnight,” Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said in an email interview.
According to a report by Reuters, a 25-basis point rate cut is already seen as “near-certain,”but investors are still looking at statements and economic projections of Fed policymakers.
The Federal Open Market Committee (FOMC) is scheduled to meet on September 17 and 18 to discuss whether or not a change in monetary policy is warranted.