Peso ends unchanged as market awaits US consumer inflation report
THE PESO ended flat against the dollar on Tuesday as the market stayed cautious before the release of US consumer inflation data.
The local unit closed at P58.01 per dollar on Tuesday, unchanged from Monday’s finish, Bankers Association of the Philippines data showed.
The peso opened Tuesday’s session slightly stronger at P57.97 against the dollar. Its intraday best was at P57.90, while its worst showing was at P58.03 versus the greenback.
Dollars exchanged went down to $1.17 billion on Tuesday from $1.33 billion on Monday.
The peso-dollar pair “traded cautiously due to the lack of catalysts ahead of the US inflation data,” a trader said by phone.
The local unit continued to get support from the seasonal increase in remittances from overseas Filipinos ahead of the holidays, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Wednesday, the trader sees the peso moving between P57.70 and P58.10 per dollar, while Mr. Ricafort expects the local unit to range from P57.90 to P58.10.
The US dollar was steady against its major rivals and edged to its strongest this month versus the yen as traders looked ahead to a US inflation reading on Wednesday for further clues on the pace of US Federal Reserve easing, Reuters reported.
The dollar index, which measures the currency against the yen and five other major peers, rose 0.1% to 106.28.
It had climbed to a two-year peak of 108.09 on Nov. 22, lifted by expectations that Donald J. Trump’s election victory would drive US growth and stoke inflation, potentially slowing Fed rate cuts.
While markets have priced in a quarter-point Fed rate cut on Dec. 18 as a near certainty, the consumer price index due on Wednesday could shine light on how much room policy makers have for easing next year.
Market participants see little action before a busy second half of the week with the US data and the European Central Bank policy meeting. — Aaron Michael C. Sy with Reuters
