Peso seen weak ahead of holiday

The peso is expected to remain weak, moving between the range of P41.50 and P41.90 per US dollar, on continued risk aversion concerns.
Investors are also expected to cut back on trading ahead of the long Holy Week holiday. "Investors ... are keeping a close watch on fresh developments in the US economy.
But there are many other factors causing risk aversion. Oil prices are at record high, fueling inflation. Other Asian currencies also suffer from these...," a trader said.
The peso on Friday closed at P41.54:$1, nine centavos weaker. Meanwhile, yield offers for the P6.5 billion worth of treasury bills up for bidding on Monday are expected to go 10-15 basis points higher ahead of the long weekend, bond traders said.
"Banks are ... risk averse on the move made by the central bank to tweak on the SDAs (special deposit accounts)," a trader said.
The central bank on Thursday kept its key rates unchanged but removed the two-, three-, and six-month maturities on its high-yielding SDAs and cut the rates on the one-week, two-week, and one-month maturities.

source: CSSV, BusinessWorld