Peso ends weaker vs US dollar on political concerns

The peso closed weaker against the US dollar on Friday ahead of an expected filing of another impeachment complaint against President Gloria Macapagal-Arroyo and as yen fell against the greenback. On Monday, the political opposition is expected to file a second impeachment case against the President. The peso touched a low of 53.20 and peaked at 53.37 before closing at 53.26, weaker than Thursday's 53.21. Volume traded was at $408.5 million. On Friday, the yen slipped to 116 from 114.79 against the US dollar. Dealers also said the President's illness had minimal impact on the currency market. Mrs. Arroyo was taken to St. Luke's Hospital Thursday night due to abdominal pains. She cancelled all her appointments on Friday as doctors diagnosed that she was suffering from an acute infectious diarrhea. "It also contributed (to the peso’s decline). But the market didn't panic over it," a local dealer said. Dealers expect the local currency to trade between 53.20 and 53.45 against the US dollar next week, as players await the results of the US Federal Reserve meeting on June 29, where interest rates are expected to be raised by 0.25 basis points. The Bangko Sentral ng Pilipinas (BSP) is also set to meet on June 29, although monetary officials said earlier they see no reason to raise local interest rates. The BSP's overnight interest rates have been steady at 7.50 percent for borrowing, and 9.75 percent for lending, since a 25-basis point hike in October last year. - GMANews.TV