PhP ends week sideways as FOMC maintains Fed rates

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MANILA – The Philippine peso ended the week little changed against the dollar after the Federal Reserve rates were kept steady.

The local unit ended Friday at PhP46.41 from PhP46.44 in the previous day, which a trader attributed to the Federal Open Market Committee’s (FOMC) decision to maintain the Fed rates.

The FOMC, in a statement issued after its September 16-17 meeting, said the US economy is able to sustain its moderate expansion but net exports remain soft and inflation remains below target.

“The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its two percent objective over the medium term,” it said.

For the day, the peso opened at PhP46.49, way better than the PhP46.58 Thursday.

It even strengthened to PhP46.40 but also slipped to PhP46.57 bringing the day’s average to PhP46.51.

Volume of trade reached US$ 617.5 million, higher than the US$ 491.4 million in the previous trading.

Next week, the currency pair is seen to trade between PhP46.40 and PhP46.70.