THE peso continued to rally against the dollar on Friday on positive market sentiment about inflation.
The currency closed at P50.765 against the greenback, 3.5 centavos stronger than a day earlier, according to data from the Bankers Association of the Philippines.It also appreciated by 4.5 centavos week on week.
The peso opened at P50.72, which was also its strongest level. It weakened to as much as P50.79.
Dollars traded slipped to $899.2 million from $1.02 billion a day earlier.
Better-than-expected inflation figures reported on Thursday supported the peso’s rally against the dollar, a trader said by telephone.
“The better than expected consumer price index helped the local unit’s strength,” he said.
November inflation was at 1.3%, well within the government’s target, according to the Philippine Statistics Authority.
The local currency was also boosted by US data on its service sector, which slowed in November because of trade tensions with China, Rizal Commercial Banking Corp. chief economist Michael L. Ricafort said.
Reuters reported that the US service sector slowed in November due to trade tensions as well as a labor shortage that has dragged production to its lowest level in a decade. — Luz Wendy T. Noble