THE peso strengthened against the dollar on Friday, with the US currency falling back after weak US housing data, amid fears of a Federal government shutdown.

The peso closed at P50.72 against the dollar, compared with P50.80 on Thursday.

The peso’s closing price was also its opening price, and was at its strongest intraday at P50.61, with the low at P50.75.

Volume on Friday rose to $819.2 million from $749.4 million the previous day.

“The peso appreciated today, as US housing starts, which is an indicator of the overall health of the US economy, fell more than expected in December 2017,” Guian Angelo S. Dumalagan, market economist at Land Bank of the Philippines, said in an e-mail.

Construction starts for single-family housing in particular showed a steep decline, Reuters reported.

According to the US Commerce Department, residential starts fell 8.2% in December.

Construction starts for single-family homes, which accounts for the bulk of the market, fell 11.8% to 836,000 units.

Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, said: “The dollar weakened as investors continue to look at the probability of a US government shutdown.”

US President Donald J. Trump and Republican leaders of Congress are chasing a Friday midnight deadline to pass a short-term spending bill, which will prevent the some agencies from shutting down.

Mr. Asuncion noted that the looming deadline the government might fail to meet gave the other currencies a boost.

Another trader said the peso recovered after a three-day decline. — Karl Angelo N. Vidal

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