Peso to move sideways vs dollar
THE PESO could trade sideways against the dollar this week as the market awaits the policy meeting of the US Federal Reserve.
The local unit closed at P55.53 per dollar on Friday, weakening by 13 centavos from its P55.40 finish on Thursday, Bankers Association of the Philippines data showed.
Week on week, however, the peso strengthened by four centavos from its P55.57 close on March 8.
The peso weakened on Friday following the release of US producer price index (PPI) and retail sales data, which resulted in a general stronger dollar and higher US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Retail sales rose 0.6% last month, the Commerce department’s Census Bureau said, Reuters reported.
They increased 1.5% on a year-on-year basis in February.
Meanwhile, another report from the Labor department showed the producer price index for final demand rose 0.6% in February after advancing 0.3% in January.
In the 12 months through February, the PPI shot up by 1.6% after advancing 1% in January.
For this week, Mr. Ricafort said the market will monitor the Fed’s March 19-20 policy meeting for leads.
Mr. Ricafort sees the peso ranging from P55.30 to P55.80 per dollar this week. — A.M.C. Sy with Reuters