Peso bounces back before key data
THE PESO rebounded against the dollar on Wednesday after mostly moving sideways as the market awaits the release of key economic data here and abroad.
The local unit closed at P56.58 per dollar on Wednesday, strengthening by three centavos from its P56.61 finish on Tuesday, Bankers Association of the Philippines data showed.
The peso opened Wednesday’s session at P56.53 against the dollar. Its intraday best was at P56.50, while its weakest showing was at P56.62.
Dollars exchanged went down to $1.57 billion on Wednesday from $1.83 billion on Tuesday.
“The peso traded sideways against the dollar ahead of US data including factory orders, durable goods, and the Job Openings and Labor Turnover Survey, as well as the local CPI (consumer price index) report,” a trader said by phone.
A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for the August CPI, within the central bank’s 3.2-4% forecast for the month.
If realized, August headline inflation would be slower than the nine-month high of 4.4% seen in July and the 5.3% print in the same month a year ago.
The Philippine Statistics Authority will release August CPI data on Thursday (Sept. 5).
The peso was supported by a decline in global oil prices and a generally weaker dollar, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Thursday, the trader sees the peso moving between P56.30 and P56.80 per dollar, while Mr. Ricafort expects it to range from P56.50 to P56.70. — AMCS