The peso was strengthened by weak US commodity data expectations against Wednesday’s greenback.
The local unit closed at P50.72 per dollar on Wednesday, rising 4.1 centavos from 50.761 pesos. fiIt will end on Tuesday, based on data from the Philippine Bankers Association.
The peso started Wednesday’s session slightly stronger at 50.725 pesos per dollar. Its weakest indication was P50.825, but the highest during the day was P50.71 against the greenback.
The exchanged dollar fell from $ 965.38 million recorded on Tuesday to $ 824.84 million on Wednesday.
According to traders, the peso has strengthened by prioritizing local units over the dollar amid expected sluggish orders for US durable consumer goods in September.
New orders and shipments of major US capital goods in August showed strong growth, according to Reuters. Orders for durable consumer goods and merchandise that lasted more than three years increased 1.8% year-on-year during the month.
Meanwhile, another trader said the market became bullish after the central bank governor said the economy was “seeing concrete signs of an economic recovery.”
In a speech Wednesday, Governor Benjamin E. Diokuno of the Central Bank of the Philippines said, “With accelerated deployment of vaccinations, fine-grained lockdowns and continued implementation of health and safety protocols, the Philippine economy will gradually resume and workers will work. I was able to get it back. “
Diokuno said proper policies are important for economic recovery and mitigating long-term production losses caused by pandemics.
On Thursday, the first trader showed a forecast range of P50.60 to P50.80 per dollar, while the second trader expected local units to move within the range of P50.65 to P50.90. increase.
The Australian dollar fell, although the US dollar fell as the European market opened on Wednesday.flData that increases the likelihood of a faster rate hike than planned, according to Reuters.
The currency market was generally quiet in recent sessions as investors wait for the Federal Reserve Board of Governance meeting next week.
Investors are also paying close attention to policy announcements from central banks in Europe, Canada and Japan this week, with supply-side-led globalflpressure.
At 0802 GMT, the US dollar index fell less than 0.1% to 93.877.
The US dollar fell about 0.4% against the Japanese yen and the pair replaced at 113.745. This is still in the recent range, close to the four-year high of 114.695, when the dollar touched the yen a week ago.
The Bank of Japan is expected to meet on Thursday to downgrade its economic valuation, and the market is betting without a rate hike for the time being.
The euro rose about 0.1% to $ 1.1605. The European Central Bank, which meets on Thursday, is expected to take a dovish stance. — — LWTN When Reuters
Diokuno’s comment, peso about expectations for weak US data
https://www.bworldonline.com/peso-up-on-diokno-comments-expectations-of-weak-us-data/ Diokuno’s comment, peso about expectations for weak US data