Peso Stays Weak Ahead of EU Central Bank Policy Decision
By KEITH RICHARD D. MARIANO, GMA News
The peso extended its losing streak on Thursday, as investors await the decision of the European Central Bank on additional stimulus amid the global economic slowdown.
The local currency was down 17 centavos to 46.64:$1 from the previous close of 46.47. The dollar actively traded during the session, with the volume staying near the $1 billion mark at $973.8 billion.
The peso tracked the weakness of other Asian currencies, BDO Unibank chief market strategist Jonathan Ravelas said.
“The currency seems to be on track to retest the 46.70 levels,” he noted.
Emerging market currencies, including the peso, suffers from risk aversion that was triggered by the uncertainties surrounding the European Central Bank’s possible response to what some economists see as an emerging recession.
While the central bank is widely expected to keep things steady, Reuters reported, bank president Mario Draghi could flag the extension of a €1 trillion bond-buying scheme.
“In times of uncertainties, stakeholders usually prefer holding safe-haven currencies than riskier currencies of emerging market economies,” MetisEtrade Inc. analyst Cherica Vicente said. – VS, GMA News