MANILA, Jan. 13 (PNA) — Investors have unloaded their dollar holdings due to falling US Treasury yields, resulting in the appreciation of the Philippine peso.
The peso appreciated by 10 centavos to a dollar after finishing Tuesday at 44.77 from day-ago’s 44.87.
”The US dollar has become less attractive because of drop of yields of US Treasuries,” a trader told PNA.
For the day, the local currency opened at 44.88, the same as its level a day ago.
It traded between its opening level and 44.76, bringing the day’s average at 44.83.
Volume of trade rose to USD 911 million from the previous day’s USD 517.7 million, which the trader said was boosted by inflows in the local equity market.
This after a positive outcome in the Philippine Stock Exchange index (PSEi), which improved by 0.55 percent to 7,399 points.
For Wednesday, the currency pair is projected to trade within a close range of 44.70 and 44.90; and trading is seen to be light on account of the shortened trading week due to Papal visit.
Pope Francis is scheduled to arrive in Manila on Thursday and will stay in the country until Monday next week.
Thus, Malacanang has declared Jan. 15, 16 and 19 as a special non-working holiday in the National Capital Region (NCR). (PNA)