Peso rebounds ahead of key US data
THE PESO rebounded against the dollar on Wednesday as investors awaited the release of key US economic data and scheduled speeches from US Federal Reserve officials overnight.
The local unit closed at P58.71 per dollar on Wednesday, strengthening by 29 centavos from its P59 finish on Tuesday, Bankers Association of the Philippines data showed.
The peso opened Wednesday’s session stronger at P58.92 against the dollar. Its intraday best was at P58.695, while its worst showing was at P58.97 versus the greenback.
Dollars exchanged jumped to $1.38 billion on Wednesday from $872.8 million on Tuesday.
The peso rose on profit taking as players awaited scheduled speeches from Fed officials and US economic data releases, a trader said by phone.
The reports scheduled for release include data on US gross domestic product (GDP) growth, personal consumption expenditures price index, durable goods, and initial jobless claims, the trader added.
The softer dollar also provided support for the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Thursday, the trader sees the peso moving between P58.50 and P59 per dollar, while Mr. Ricafort expects it to range from P58.65 to P59.
The US dollar consolidated against its major peers on Wednesday as investors weighed US President-elect Donald J. Trump’s tariff pledges, while awaiting a key inflation figure out of the US later in the day, Reuters reported.
Mr. Trump’s vows on Monday of big tariffs on Canada, Mexico and China, the United States’ three largest trading partners, have left investors jittery, even if some of the reaction was tempered later in the US day.
The dollar was steady ahead of the October personal consumption expenditures price index due later on Wednesday, before US markets close for the Thanksgiving holiday on Thursday.
The dollar index, which measures the greenback against six rivals, was last down 0.07% at 106.83. — Aaron Michael C. Sy with Reuters
