Peso appreciates vs. dollar on higher expectations for Fed rate delay

MANILA, Oct. 7 (PNA) — The Philippine peso surged against the greenback Wednesday on more negative economic data from the US.

It ended the day at PhP46.14, or PhP0.33 better than the PhP46.47 in the previous trading.

A trader partly attributed this to the widening of US trade deficit in August 2015 to US$ 48.3 billion, larger than market expectation of about US$ 47.4 billion.

“This made investors more convinced for the delay in the Fed (Federal Reserve) rate hike to next year,” the trader said.

For the day, the local unit opened at PhP46.40, sideways from the PhP46.45 a day ago.

It traded between its closing level and PhP46.44 resulting to an average of PhP46.27.

Volume of trade further went up to US$ 1.24 billion from day-ago’s US$ 1.11 billion.

For Thursday the currency pair is seen to trade between PhP46.10 and PhP46.30. (PNA)