Peso may weaken vs dollar on Fed meeting, budget balance data

THE PESO could weaken versus the dollar this week as the market awaits the release of the government’s latest budget balance data and the US central bank’s rate decision.

The local unit closed at P48.381 per dollar on Friday, appreciating by 2.9 centavos from its P48.41 finish on Thursday, based on data from the Bankers Association of the Philippines.

Meanwhile, it barely moved from its P48.38 finish a week earlier.

The peso strengthened against the greenback last week after the government closed its offering of euro-denominated bonds, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The Bureau of the Treasury last week raised €2.1 billion in fresh funds via eurodenominated bonds with tenors of four years, 12 years, and 20 years.

Another factor that contributed to the peso’s strength was the decline in US Treasury yields, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said.

For this week, Mr. Asuncion said the market will take its cue from the US Federal Reserve’s monetary policy decision at its meeting on April 27-28. — L.W.T. Noble with