Peso still firm vs. dollar

MANILA, (PNA) — The peso continued its sideways trade against the dollar Monday still on developments overseas with investors hoping for a resolution of the issue on the US debt ceiling.

It ended the first day of this trading week at 43.15 from last Friday’s 43.13.

A trader said investors decided to stay at the sidelines as they await the decision of US lawmakers on whether or not to increase the US government’s US$ 16.7 trillion borrowing limit this year or let the world’s largest economy default on its liabilities by October 17.

This wait-and-see stance made the local bourse end the day on the red, and hurt the local currency.

The Philippine Stock Exchange index (PSEi) shed 0.73 percent or 47.10 points to 6,442,700.

The peso opened flat for the day at 43.12 and traded between 42.10 and 43.17. This brought the day’s average at 43.15.

Volume of trade went down to US$ 534 million from US$ 818.3 million at the end of last week.

The trader expects the peso to trade between 43.10 and 43.30 Wednesday.

There will be no trading Tuesday because it’s a national holiday in line with the observance of Eid’l Adha or Feast of Sacrifice, one of Islam’s greatest feast.