THE PESO may trade sideways against the dollar this week amid a lack of catalysts but may get support from an increase in remittances.

The local unit closed at P56.84 per dollar on Friday, inching up by three centavos from its P56.87 finish on Thursday, data from the Bankers Association of the Philippines showed.

Week on week, however, the peso weakened by 2.9 centavos from its P56.811 per dollar finish on Oct. 13.

The local currency opened Friday’s session at P56.75 against the dollar, which was also its intraday best. Its weakest showing was at P56.84 versus the greenback.

Dollars exchanged went down to $912.27 million on Friday from $990.3 million on Thursday.

The peso strengthened on Friday amid expectations of a seasonal increase in remittances, rising despite a stronger dollar and higher crude oil prices, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted in a Viber message.

For this week, the peso could continue to trade sideways amid a lack of catalysts but could strengthen if it breaches the P56.50-per-dollar level, Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

The peso could get support from an expected increase in remittances before the trading break next week, Mr. Roces said.

For this week, he sees the peso moving between P56.50 and P56.80 per dollar, while Mr. Ricafort expects it to range from P56.60 to P56.98. — AMCS