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Peso down ahead of Fed chair's speech

The Philippine peso opened the week weaker on Tuesday as investors turned cautious ahead of Federal Reserve Chairman Janet Yellen's speech that is seen to support the US central bank's stance on raising interest rates further this year.

The local currency shed 7 centavos to close at P50.290:$1 from 50.220 on Friday.

Philippine financial markets were closed on Monday in observance of Eid'l Fitr or the end of Ramadan.

"Investors are staying on the sidelines ahead of Yellen's statement later," a trader from a local told GMA News Online.

"They are also waiting for other catalysts that will move the peso-dollar pair," the trader added.

According to a report by Reuters, the US currency managed to hold gains, despite lower Treasury yields, ahead of Yellen's speech due later on Tuesday.

Dollar bulls will be hoping that Yellen will validate the Fed's inclination to keep raising interest rates after this month's tightening, the report said. — Ted Cordero/RSJ, GMA News