Peso inches higher ahead of US data
THE PESO traded sideways on Thursday due to profit taking and as the market stayed on the sidelines ahead of US data on unemployment due overnight.
The local unit ended trading at P50.85 per dollar yesterday, appreciating by three centavos from its P50.88 close on Wednesday, according to data from the Bankers Association of the Philippines.
The peso started Thursday’s session at P51 per dollar. Its weakest showing for the day was seen at P51.03, while its strongest was at P50.80 against the greenback.
Dollars traded went up to $424.90 million from $346 million on Wednesday.
A trader said investors were cautious as they await the release of key US data.
“Most currencies globally saw sideways trading as market is awaiting data on US unemployment data,” the trader said in a phone call.
Reuters said the number of Americans filing for unemployment benefit claims likely inched up for the second week in a row with more areas put under stayat-home measures to prevent spreading the virus.
Initial claims for state unemployment benefits probably surged to a seasonally adjusted 3.50 million for the week ended March 28, according to a Reuters survey of economists. Estimates in the survey were as high as 5.25 million.
Another trader said the peso’s stronger close was on the back of profit taking despite weakness early in the day due to market fears over the impact of the coronavirus disease 2019 (COVID-19).
“The peso closed stronger from intraday profit taking near the 51-peso level after opening weaker as investors grew more wary over the adverse impact of the COVID -19 to the global economy,” a trader said in an e-mail.
COVID-19 has sickened more than 900,000 across the world and caused the death of over 47,000. In the Philippines, infected patients reached 2,311 as of Wednesday, with deaths hitting 96, according to Health department officials.
The first trader sees the peso moving around the P50.70 to P51 levels on Friday, while the second trader gave a forecast range of P50.80 to P51.00. —