Peso weakens ahead of US jobs data

21

In the United States, the Peso declined against the dollar because the currency continued to deal sideways further on the release of jobs data. 

The local unit closed the week at P51.195 vs. the greenback, fall 6.5 centavos from its P51.13-per-dollar. 

The peso opened the session at P51.20 for each dollar. It surges to as high as P51.10 intraday, as its worst showing situated at P51.21 against the currency of the United States. Dealing volume thinned somewhat to $770.24 million from the $775.7 million that changed hands the preceding day.

In a phone interview, a trader said that the peso moved sideways against the dollar since market players were still on a wait-and-see form further on the US non-farm payrolls facts scheduled for release. He added, ‘The dollar-peso traded sideways now still as the market remains to pay attention to the US data’. 

Headline inflation in June slowed to 2.7% from the 3.2% tallied in May and pave in June 2018 by 5.2%. It was also the slowest as the 2.6% print in August 2017.

The result of June fell within the BSP (Bangko Sentral ng Pilipinas’) .2-3% forecast for the month and was lesser than the 2.9% medium estimation in Business World’s poll of 12 economists which was conducted late last week. 

In a statement, the Philippine Statistics Authority said that the slowdown of inflation in June 2019 was chiefly driven by the slower yearly rate which was posted in the index of the non-alcoholic beverages and heavily-weighted food at 2.7%. One more trader said the softer inflation print last month increased “additional bets of a likely BSP rate cut in the August Monetary Board meeting.”

Comments are closed.