Peso bounces back ahead of Fed meeting

The peso broke a three-day losing streak on Tuesday, as profit-taking downed the dollar ahead of the US Federal Reserve meeting.

 

The peso gained 6 centavos to settle at 45.50 against the dollar. The local currency previously closed at 45.56 after posting losses for the third straight day.

 

"The rally of the US dollar slowed on profit-taking ahead of this week’s rate statement," said MetisEtrade Inc. analyst Cherica Vicente.

 

The US central bank will meet on Tuesday to discuss a possible increase in interest rates as early as September. 

 

Such rate adjustment supposedly means higher yields for investments and, thus, creates preference for the greenback.

 

Economic data releases from the US have earlier supported an increase in interest rates in the world's largest economy. – Keith Richard Mariano/VS, GMA News