Peso slips further amid oil price retreat

THE PESO continued its losing streak versus the dollar yesterday as investors await more marketmoving data overseas, and on safe-haven buying as the fresh slump in oil prices raised more concerns over global growth.

The local currency closed at P47.86 versus the dollar on Wednesday, 12 centavos weaker than its P47.74-to-the-dollar finish the previous session.

The peso opened trading weaker at P47.86 against the greenback. Its strongest intraday level was at P47.83 per dollar while its weakest point was logged at P47.92 versus the foreign currency.

Dollars traded declined to $ 622.6 million yesterday from Tuesday’s $ 663.4 million, data from the Philippine Dealing & Exchange Corp. showed.

A trader said the peso closed weaker despite “better- thanexpected” Chinese services data as market players turned “more cautious” after another tumble in already depressed oil prices renewed fears over the world economy.

“China Caixin January services PMI (purchasing managers’ index) came in at 52.4 versus 50.2 previously. Although it reflects a six-month high after a 17-month low last December, the fresh decline in oil prices caused investors to continue to worry about the state of the global economy,” the trader said.

“Its just a general risk aversion... investors were also awaiting the release of US employment data towards the end of the week for direction,” the trader added.

Another trader said: “The peso depreciated on account of safehaven buying amid the renewed decline in oil prices below the $30 per barrel level.”

“Continued concerns over China and caution ahead of the US non-farm payrolls data on Friday also kept the peso weak,” the trader added.

Crude oil prices stayed below $30 a barrel in early Asian trade Wednesday on expectations of bigger US crude stockpiles erasing gains from last week’s rally, consequently pulling global markets lower.

For today, a trader said “there might be a bias in favor of the peso due to expectations of downbeat US ADP employment data.”

One trader said the exchange rate could range between P47.65 and P47.85 range. The other trader put the support at P47.70 against the greenback and the resistance at P47.90. —