The Philippine peso surged against the US dollar on Wednesday on more negative economic data from the US as higher expectation for Fed rate delay.
It ended the day at P46.14, or P0.33 better than the P46.47 in the previous trading.
A trader partly attributed this to the widening of US trade deficit in August 2015 to US $48.3 billion, larger than market expectation of about US $47.4 billion.
“This made investors more convinced for the delay in the Fed (Federal Reserve) rate hike to next year,” the trader said.
For the day, the local unit opened at P46.40, sideways from the P46.45 a day ago. It traded between its closing level and P46.44 resulting to an average of P46.27.
Volume of trade further went up to US$ 1.24 billion from day-ago’s US$ 1.11 billion.(PNA)