THE PESO moved sideways versus the greenback on Thursday ahead of the release of January inflation data and as oil prices remain elevated due to tight supply.

The local unit closed at P51.05 per dollar on Thursday, barely changed from its P51.045 finish on Wednesday, based on data from the Bankers Association of the Philippines.

The peso opened the session stronger at P51 versus the dollar. Its weakest showing was at P51.10, while its intraday best was at P50.92 against the greenback.

Dollars exchanged went down to $1.052 billion on Thursday from $1.187 billion on Wednesday.

A trader said the peso inched down on Thursday as the market was waiting for the release of January inflation data.

The Philippine Statistics Authority will report the January consumer price index (CPI) on Friday. It will have 2018 as its base year from 2012 previously.

A BusinessWorld poll held last week yielded a median estimate of 3% for January headline inflation.

The Bangko Sentral ng Pilipinas (BSP) on Thursday did not provide its usual monthly inflation range, saying they want to see first the historical series for the recalibrated CPI in order to update their own inflation models used for monetary policy analysis and macroeconomic forecasting. However, it noted that last month’s inflation may be driven by higher prices of food and fuel, with lower electricity costs seen as an offsetting factor.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the market also factored in the recent uptick in oil prices.

Reuters reported that oil prices slipped on Thursday, although tight supply remains an issue that could push prices higher as major oil producing countries are still keen on moderating output increases.

Brent crude dropped 17 cents or 0.2%, to $89.30 a barrel by 0420 GMT, after rising 31 cents on Wednesday. Meanwhile, the US West Texas Intermediate crude dipped 31 cents or 0.4% to $87.95 a barrel following a six-cent uptick on Wednesday.

For Friday, Mr. Ricafort gave a forecast range of P50.90 to P51.10 per dollar, while the trader expects the local unit to move within P50.85 to P51.15. — L.W.T. Noble with Reuters

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