Peso rises ahead of US payrolls report

THE PESO opened the week higher versus the dollar ahead of key US labor data to be released on Friday and as investors focused on the downward-revised first quarter growth figure of the world’s largest economy.

The peso ended at P50.46 against the greenback on Monday, yesterday, gaining 11 centavos from its P50.57per-dollar close on Friday.

The local currency opened the session at its intraday low of P50.59 versus the dollar. However, the peso bounced back, logging a high of P50.45 versus the greenback.

Dollars traded yesterday rose to $509.2 million from the $432 million that exchanged hands on Friday.

One trader attributed the peso’s strong close to muted trading, and with some market players tweaking their positions.

“We saw fairly quiet trading again. Towards the afternoon, there were inflows. The range is still holding due to mainly position adjustment among investors,” the trader said by phone.

Meanwhile, another trader said the peso gained versus the greenback yesterday ahead of Friday’s release of US non-farm payrolls data.

A third trader attributed the local currency’s strength against the dollar to a downward revision in US gross domestic product (GDP) growth for the first quarter, which came alongside rosy second-quarter data.

“The peso appreciated today after last week’s US GDP growth report failed to impress investors. The US economy accelerated in the second quarter, aligned with expectations, but the first quarter growth reading was revised down,” the trader said by e-mail on Monday.

Reuters reported that US economic growth in the April to June period came in at 2.6%, faster than the first quarter’s 1.2% pace. The January to March reading, however, was revised down from an earlier 1.4% estimate.

For today, the first trader expects the peso to move between P50.40 and P50.60 versus the dollar, while the second sees a P50.45-P50.60 range. The third trader sees the exchange rate coming in at P50.35 to P50.55.

“The peso might move sideways, as investors await for critical US eco-