MANILA – The Philippine peso touched the 43-level yesterday and closed weaker against the US dollar as investors anticipate further cut in central bank’s policy rates this week.

The local unit shed P0.13 to P42.97 from last Friday’s P42.84 close.

Analysts have projected a weaker peso this week and this has materialized in the start of this week’s trading when the local currency opened at P42.85, P0.16 less than it’s P42.69 opening level last Friday.

Its opening level is its strongest for the day after it further dropped to P43.11.

Average rate stood at P43.03, P0.32 down from the P42.71 Friday last week.

Volume of trade also went down to $907.64 million from the previous trading day’s $1.04 billion.

Central bank’s policy-making Monetary Board will have its policy rate setting meet on Thursday.

It is expected to further slash the Bangko Sentral ng Pilipinas’ policy rates after the 25 basis point cut last January.

To date, the overnight borrowing rate is 4.25 percent while the overnight lending rate is 6.25, both of which were cut to boost expansion of the domestic economy supported by, among others, the manageable inflation rate.*PNA

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