Peso down ahead of BOJ, Fed policy decisions

The peso fell slightly against the greenback on Tuesday as investors remained cautious ahead of the policy decisions by the Bank of Japan (BOJ) and US Federal Reserve.

The local currency lost 3 centavos to close at P47.845:$1 from 47.815 on Monday.

The foreign exchange rate settled at a nearly seven-month low since closing at P47.86:$1 on February 3.

"The peso depreciated today, although it moved within a tight range, due to caution ahead of the interest rate decisions of the BOJ and the US Fed," Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said in an emailed note.

Both the Fed and BOJ are holding two-day policy monetary policy meetings this week.

The policy meetings are expected to shed light on whether or not the Fed will increase interest rates this year and if the Japanese central bank will add or reduce its stimulus bond-buying program. — Ted Cordero/VDS, GMA News