Peso sinks to P50:$1 level on Aug. inflation
THE PESO fell to the P50-perdollar level anew on Tuesday due to faster-than-expected August inflation.
The local unit closed at P50.025 versus the greenback on Tuesday, shedding 10 centavos from its P49.925 finish on Monday, data from the Bankers Association of the Philippines showed.
The peso opened Tuesday’s session at P49.95 per dollar. Its weakest showing was at P50.04, while its intraday best was at P49.87 versus the greenback.
Dollars exchanged increased to $788.45 million on Tuesday from $717.4 million on Monday.
A trader said the peso weakened following the release of data showing inflation picked up in August.
The consumer price index (CPI) rose 4.9% last month, surpassing the central bank’s 2-4% target and picking up from the 4% print in July. This was the fastest headline inflation pace in more than two years or since the 5.1% logged in December 2018.
Last month’s CPI reading was also quicker than the 4.4% median estimate of 16 analysts in a BusinessWorld poll and fell at the high end of the central bank’s 4.1-4.9% estimate for the month.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso dropped against the dollar as coronavirus cases continued to rise.
The Health department reported 18,012 new infections on Tuesday, bringing active cases to 158,637.
For Wednesday, Mr. Ricafort gave a forecast range of P49.90 to P50.10 per dollar, while the trader expects the local unit to move within P49.95 to P50.20. —