Peso climbs to three-month high
THE PESO climbed to a three-month high against the dollar on Tuesday on expectations of softer US consumer price index (CPI) data for February.
The local unit closed at P55.31 per dollar on Tuesday, strengthening by six centavos from its P55.37 finish on Monday, Bankers Association of the Philippines data showed.
This was the peso’s strongest close in more than three months or since its P55.30-per-dollar finish on Dec. 7.
The peso opened Tuesday’s session weaker at P55.42 against the dollar. Its worst showing was at P55.51, while its intraday best was at P55.30 versus the greenback.
Dollars exchanged rose to $1.13 billion on Tuesday from $1.09 billion on Monday.
“The peso strengthened ahead of a likely softer US consumer inflation report overnight,” a trader said in an e-mail.
The dollar was also mostly weaker ahead of the US CPI release as it could affect the US Federal Reserve’s next move, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Wednesday, the trader sees the peso moving between P55.15 and P55.40 per dollar, while Mr. Ricafort sees it ranging from P55.25 to P55.45. — AMCS
