PHILIPPINE STAR/WALTER BOLLOZOS

THE PESO climbed against the dollar for a seventh straight session on Thursday and hit a three-month high following stronger-than-expected Philippine gross domestic product (GDP) growth in the second quarter.

The local unit closed at P57.316 per dollar on Thursday, strengthening by 19.9 centavos from its P57.515 finish on Wednesday, Bankers Association of the Philippines data showed.

This was the peso’s strongest finish in more than three months or since its P57.221 close on May 7.

The peso opened Thursday’s session weaker at P57.68 against the dollar, which was also its worst showing for the day. Its intraday best was at P57.25 versus the greenback.

Dollars traded went down to $1.61 billion on Thursday from $1.76 billion on Wednesday.

The peso’s climb against the dollar on Thursday was driven by data showing economic growth picked up in the second quarter, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Philippine GDP expanded by 6.3% in the second quarter, the government reported on Thursday. This was faster than the revised 5.8% growth in the first quarter and the 4.3% clip a year ago.

This was also above the 6% median estimate in a BusinessWorld poll of 19 economists.

In the first semester, economic growth averaged 6%. The government is targeting 6-7% GDP growth this year.

For Friday, Mr. Ricafort sees the peso moving between P57.20 and P57.40 per dollar.

Meanwhile, the yen hit choppy trading on Thursday after a sharp drop the day before in a volatile week in which investors have had to digest the unwinding of popular carry trades and how Japanese monetary policy might evolve, Reuters reported.

The yen swung between losses of 0.14% and a gain of 0.85%, having slid 1.6% on Wednesday, after the Bank of Japan’s Deputy Governor Shinichi Uchida played down the chance of a near-term hike in interest rates that would typically boost the currency.

The yen started the week by scaling a seven-month high of 141.675 per dollar, a far cry from the 38-year lows where it traded in early July, after soft US jobs data last week stoked recession worries and roiled investors.

The sharp moves in the yen have pushed the dollar index, which measures the US currency against six others including the yen, down 0.14% to 102.97, near Monday’s seven-month low of 102.15.

Investor focus will now be on the US consumer price inflation report for July due next week. — AMCS with Reuters