There is no reason or any major factor that will affect the peso’s further movements. I think it will range between P47 to P47.50 per dollar this week," a trader said. Last Friday, the peso opened at P47.42 per dollar, hit an intraday high of P47.43 and a low of P47.30 before closing at P47.40.
Continuing risk aversion due to Wall Street’s volatility, a stronger dollar over other major foreign currencies and a weaker demand for the peso pushed the local currency to lose three cen-tavos last Friday from Thursday.
Investors also had a wait-and-see attitude on Friday as to what kind of action the Bangko Sentral ng Pilipinas would take amidst the economic slowdown.A trader said he believes the Monetary Board’s meeting on Thursday to review rates will impact the peso later in the week."The peso should weaken in case the BSP cuts rates," a trader said. The market expects the central bank to cut rates by 25 to 50 basis points on the back of declining inflation.
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