Peso declines further as US unemployment signals recovery momentum
The peso continued to weaken Friday after US jobs data forecasts pointed to the possibility of growing momentum for an economic recovery there.
The peso closed at P49.20 against the dollar Friday, declining from its P49.11 finish Thursday, according to the Bankers Association of the Philippines website.
The peso opened at P49.28, with the low at P49.31 and the high at P49.08.
Dollar trading volume fell to $956 million from $1.35 billion previously.
Week-on-week, the peso shed P1.11 from its June 15 close of P48.09.
Friday’s finish was the weakest in more than 11 months or since July 27, 2020 when it closed at P49.25, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said.
Mr. Ricafort attributed this to the strong expectations for US jobless claims data.
The number of US citizens filing for unemployment benefits fell last week, possibly heralding a labor market rebound, Reuters reported.
Economists surveyed by Reuters estimated that nonfarm payrolls may have increased by 700,000 in June following the 559,000 rise in May, which will produce a decline in the jobless rate to 5.7% from 5.8% previously.
Other positive developments in the US also helped buoy its currency, according to Mr. Ricafort, such as strong manufacturing data.
He added that the Philippines’ own expected economic recovery is likely to increase demand for exports, raising the prospect of increased dollar outflows. – Beatrice M. Laforga
