Peso inches up as markets await US jobs data
THE PESO edged up against the dollar on Monday but stayed at the P59 level as markets turned cautious before the release of US data that could give clues on the state of the world’s largest economy and affect the US Federal Reserve’s policy path.
The local unit gained 2.5 centavos to close at P59.04 versus the greenback from its P59.065 finish on Friday, data from the Bankers Association of the Philippines data showed.
The peso opened Monday’s trading session sharply weaker at P59.15 versus the dollar. Its weakest showing was at P59.18, while its intraday best was its closing level of P59.04 against the greenback.
Dollars traded fell to $911.5 million from $1.65 billion on Friday.
The peso inched up due to cautious trading leading up to the release of the latest US nonfarm payrolls data, a trader said in a phone interview.
The peso was also supported by a generally weaker greenback following the US Federal Reserve’s rate cut last week and amid lower global crude oil prices, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Tuesday, the trader said the peso could move between P58.90 and P59.20 per dollar, while Mr. Ricafort sees it ranging from P58.95 to P59.15.
A host of US data delayed by the government shutdown is set to be released, giving investors a long-awaited view of the world’s largest economy, with the November jobs report due on Tuesday and inflation figures on Thursday, Reuters reported.
A divided Fed cut rates last week, but Chair Jerome H. Powell signaled borrowing costs were unlikely to drop further in the near term as policymakers await more economic clarity.
US President Donald J. Trump said on Friday he was leaning towards either former Fed Governor Kevin Warsh or National Economic Council Director Kevin Hassett to lead the central bank next year. — A.M.C. Sy with Reuters
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