Peso firms up by P0.05 in cautious trade ahead of Yellen speech

The Philippine peso traded sideways to a firmer note on Wednesday in cautious trading ahead of the speech of Federal Reserve chair Janet Yellen.

The local currency gained 5 centavos to close at P51$1 from Tuesday's close of 51.05.

"Investors are on the sidelines as Yellen is scheduled to make a speech. This is a risk event so players are cautious," a foreign exchange trader from a local bank told GMA News Online.

Land Bank of the Philippines market economist Guian Angelo Dumalagan noted the market was basically cautious in view of Yellen's speech.

"The peso again moved sideways today ahead of the speech of Fed chair Yellen and key US labor reports," Dumalagan said.

Investors would like to get clearer view of the whether Yellen is dovish or hawkish about an interest rate hike later this year.

"She will just affirm her prior view that rates should rise gradually due to inflation concerns, although she would likely keep open the possibility of another rate increase by December," Dumalagan said. — VDS, GMA News