Peso back at 52-to-USD level, PSEi down ahead of GDP re­port

Sun.Star Cagayan de Oro - - Business -

MANILA -- The con­tin­ued an­tic­i­pa­tion of an­other in­crease in the Bangko Sen­tral ng Pilip­inas’ (BSP) key rates be­fore yearend lifted the peso back to the 52-to-the-green­back level Wed­nes­day, but the Philip­pine Stock Ex­change in­dex (PSEi) re­treated again ahead of a growth re­port.

The peso ended the day at 52.95 to the green­back, its strong­est af­ter the 52.85 close last Au­gust 16.

Aside from rate hike ex­pec­ta­tions from the cen­tral bank, a trader also cited profit-tak­ing as a re­sult of the peso’s per­for­mance dur­ing the day.

Ex­pec­ta­tions of a pos­i­tive do­mes­tic out­put for the third quar­ter also helped the peso, the trader said.

The govern­ment is sched­uled to re­port the third quar­ter 2018 gross do­mes­tic prod­uct (GDP) on Thurs­day, and some econ­o­mists fore­cast a 6-per­cent level out­put.

Growth in the first half of the year av­er­aged 6.4 per­cent, with the first quar­ter fig­ure at 6 per­cent and the sec­ond quar­ter at an up­wardly re­vised 6.2 per­cent.

For the day, the lo­cal cur­rency opened at 52.93, way bet­ter than the 53.21 a day ago.

It im­proved to as much as 52.89 but was also pulled to 53.11, re­sult­ing in an av­er­age of 52.992.

Vol­ume surged to USD1.447 bil­lion from USD983.78 mil­lion in the pre­vi­ous day.

On the other hand, the main eq­ui­ties in­dex fell 2.04 per­cent, or 146.18 points, to 7,033.93 points.

The BPI, in its mar­ket re­port, traced this devel­op­ment to risks from US mid-term elec­tions and the wider-than-ex­pected trade deficit of the coun­try.

Cit­ing re­ports, the bank said Democrats posted vic­tory in the House of Rep­re­sen­ta­tives while Repub­li­cans kept a slim ma­jor­ity in the Se­nate.

Mean­while, the Philip­pine Sta­tis­tics Au­thor­ity (PSA) re­ported a fur­ther in­crease in the coun­try’s trade deficit to USD3.9 bil­lion last Septem­ber. This, af­ter im­ports grew by 26.1 per­cent while ex­ports con­tracted by 2.6 per­cent. (PNA)

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