Peso sinks as job data temper Fed easing bets
THE PESO sank against the dollar on Monday as stronger-than-expected US jobs data pushed back US Federal Reserve rate cut bets anew.
The local unit closed at P58.79 per dollar on Monday, dropping by 27 centavos from its P58.52 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session sharply weaker at P58.75 against the dollar. Its weakest showing was at P58.80, while its intraday best was at P58.67 versus the greenback.
Dollars exchanged dropped to $604.85 million on Monday from $1.23 billion on Friday.
The peso was dragged down by a generally stronger dollar on Monday as robust US jobs data tempered Fed policy easing expectations, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
US Treasury yields also rose due to the decreased Fed cut bets, Mr. Ricafort added.
“The peso weakened as the stronger-than-anticipated US nonfarm payrolls dimmed views of an earlier Fed rate cut,” a trader likewise said in an e-mail.
For Tuesday, the trader said the peso could strengthen on profit taking and ahead of the release of the latest Philippine trade data.
The trader expects the peso to move between P58.55 and P58.80 on Tuesday, while Mr. Ricafort sees it moving between P58.60 and P58.80 per dollar. — AMCS with Reuters