THE PESO weakened anew against the dollar on Wednesday due to expectations of stronger US economic data.

The local unit closed at P57.55 per dollar on Wednesday, dropping by four centavos from its P57.51 finish on Tuesday, Bankers Association of the Philippines data showed.

The peso opened Wednesday’s session stronger at P57.40 against the dollar. Its intraday best was at P57.31, while its weakest showing was at P57.575 versus the greenback.

Dollars exchanged went up to $1.38 billion on Wednesday from $1.18 billion on Tuesday.

“The peso depreciated today ahead of a likely upbeat US durable goods report,” a trader said in an e-mail on Wednesday.

The peso also weakened ahead of the release of the US gross domestic product (GDP) growth report for the first quarter, as well as the US personal consumption expenditures price index for March, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Thursday, the trader said the peso could depreciate further due to a likely robust US GDP report.

The trader sees the peso moving between P57.40 and 57.65 on Thursday, while Mr. Ricafort expects it to range from P57.45 to P57.60 per dollar.

STRONG DOLLAR
The US dollar regained some ground on Wednesday following big falls against the euro and sterling the day before, while the yen remained mired near 34-year lows even as Japanese officials stepped up intervention warnings, Reuters reported.

The dollar index — which measures the currency against six major peers including the euro, sterling and yen — was last up 0.2% at 105.84 after earlier touching the lowest since April 12 at 105.59.

It slumped 0.4% on Tuesday, driven by surprisingly robust European activity data and cooling US business growth.

The dollar index reached a 5-1/2-month peak of 106.51 last week as persistent inflation forced Fed officials to signal no rush to ease policy.

As the dollar has rebounded, it marked a new 34-year high against the yen at 154.98. — AMCS with Reuters

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