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Peso ends the week flat after Fed minutes released

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The peso ended flat against the dollar on Friday, July 6, after the release of the minutes of the June meeting of the US Federal Reserve (Fed).

The local unit ended Friday’s session at P53.42 versus the greenback, flat from its close on Thursday.

The peso opened the session a bit stronger at P53.41, while its intraday high stood at P53.36 per dollar. Its worst showing for the day was at P53.46 against the US currency.

Dollars traded reached $506.5 million, slightly lower than the $520.5 million that switched hands on Thursday.

A trader said that the local unit traded “within a very tight range” on Friday following the minutes of the Fed’s rate-setting Federal Open Market Committee (FOMC).

“The peso ended flat as it traded within a very tight range. The release of the Fed minutes was not that significant,” the trader said in a phone interview.

American central bankers said during the June FOMC meeting expressed concerns that global trade tensions could hit the US economy that by most measures indicated strong performance, Reuters reported.

Many policymakers noted that the gradual hikes could take federal funds rate above the neutral level some time next year.

During its June 12-13 meeting, the Fed raised its benchmark rates by a quarter of a percentage points, the second adjustment for the year, on the back of strong economy. Federal rates now stand at at a 1.5-1.75% range. — Karl Angelo N. Vidal