Peso inches down before key US data
THE PESO inched down against the dollar on Thursday ahead of the release of key US economic data.
The local unit closed at P55.40 per dollar on Thursday, weakening by less than a centavo from its P55.396 finish on Wednesday, Bankers Association of the Philippines data showed.
The peso opened Thursday’s session slightly stronger at P55.37 against the dollar. Its weakest showing was at P55.44, while its intraday best was at P55.36.
Dollars exchanged slipped to $868.8 million on Thursday from $1.01 billion on Wednesday.
The peso weakened before the release of US producer price index and retail sales data overnight and as global crude prices rose, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“The peso slightly weakened ahead of a potentially robust US retail sales report overnight,” a trader said in an e-mail.
The dollar inched higher on Thursday as investors waited for US economic data later in the day, Reuters reported.
The dollar index, which gauges the currency against six major peers, rose 0.14% to 102.89.
It has largely shrugged off Tuesday’s hotter-than-expected US consumer inflation data and is roughly unchanged since the figures. The index is up around 1.5% this year as US data has shown that the economy remains strong, causing investors to rein in their bets on rapid and deep interest rate cuts.
Data due at 1230 GMT (8.30 a.m. ET) — on producer inflation, retail sales and weekly jobless claims — could provide more clues about the timing of rate cuts.
Meanwhile, Brent rose four cents to $84.07 a barrel, while US crude was flat at $79.72 per barrel.
For Friday, the trader said the peso could weaken further due to expectations of a rate cut by China’s central bank.
The trader sees the peso moving between P55.30 and P55.55 per dollar, while Mr. Ricafort expects it to range from P55.30 to P55.50. — AMCS with Reuters
