Fed ruling favorable to PHP but not to PSEi

PHP (Photo: Cheng Ilagan/Philippine Canadian Inquirer)

MANILA—Lack of direction on when the next hike of the Federal Reserve’s key rates would weaken the US dollar to the advantage of the Philippine peso but not to the local bourse Thursday.

The local unit finished the day at 49.75 from the previous session’s 49.82.

A trader said the yields of US treasuries pulled back after the Fed decided to keep rates steady, at 0.50 to 0.75 percent and lack of direction from Fed chairperson Janet Yellen regarding the next increase in the Fed’s key rates.

For the day, the local unit opened at 49.76, sideways compared to the 49.70 a day ago.

It traded between 49.83 and 49.73 bringing the day’s average to 49.78, flat from the previous day’s level.

Volume of trade reached USD667.4 million, higher than Wednesday’s USD386.2 million.

The currency pair is seen to trade between 49.70 and 49.90 Friday.

On the other hand, the Philippine Stock Exchange index (PSEI) again ended the day on the red after losing 0.02 percent, or 1.54 points, to 7,225.91 points.

All Shares also contracted with a 0.09 percent, or 3.80 points, drop to 4,365.71 points.

Half of the sectors registered increases, led by Property with 0.70 percent uptick followed by Financials, 0.37 percent; and Industrial, 0.11 percent.

On the other hand, Mining and Oil went down 1.65 percent, Holding Firms, 0.58 percent; and Services, 0.27 percent.

Total volume of trade reached 2.1 billion shares amounting to Php 5.94 billion.

Losers led gainers at 102 to 80 while 44 where unchanged.