Peso sinks to near 3-month low before US GDP

THE PESO declined to a near three-month low versus the dollar on Thursday ahead of the release of US gross domestic product (GDP) data.

The local unit closed at P56.53 per dollar on Thursday, weakening by 23 centavos from its P56.30 finish on Wednesday, based on Bankers Association of the Philippines data.

This was the peso’s weakest close since its P56.73 finish on Oct. 31, 2023.

The peso opened Thursday’s session stronger at P56.22 against the dollar. Its intraday best was at P56.16, while its weakest showing was at P56.57 versus the greenback.

Dollars exchanged went up to $1.47 billion on Thursday from $1.38 billion on Wednesday.

“The peso weakened anew due to some caution ahead of the US GDP report,” a trader said in an e-mail.

Fourth-quarter and full-year 2023 US GDP data were set to be released overnight.

The peso declined amid weak hot money data, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Foreign portfolio investments posted a net outflow of $247.3 million last year versus the net inflow of $886.7 million in 2022, data from the Bangko Sentral ng Pilipinas showed.

Stronger-than-expected US manufacturing data also weighed on the peso as it reduced expectations of an early rate cut by the US Federal Reserve, Mr. Ricafort added.

For Friday, the trader sees the peso moving between P56.30 and P56.55 versus the dollar, while Mr. Ricafort expects it to range from P56.40 to P56.60.