THE PESO could weaken this week due toflthe expectations of the population and a probably wider tradeIfcit.
The local unit ended trading at 51.67 pesos to the dollar on Friday, gaining seven centavos from its close of 51.74 pesos on Thursday, based on data from the Philippine Bankers Association.
He also strengthened by 46 centavos compared to his P52.13 Ifend a week earlier.
The peso opened at 51.79 pesos to the dollar on Friday. Its weakest display was at P51.81, while its intraday best was at P51.55 against the greenback.
Traded dollars rose to $1.33 billion on Friday from $1.047 billion on Thursday.
The peso rose on market optimism following improving manufacturing data, the chief economist at Rizal Commercial Banking Corp said. Michael L. Ricafort.
The Philippine Purchasing Managers’ Index reached 53.2 in March, according to a report released Friday by S&P Global Ratings. This is its highest level since reading 54.2 in November 2018. A reading above 50 indicates expansion while below signifies contraction in activity.
S&P said manufacturing activity in the Philippines rose for the second month in a row as businesses continued to reopen amid looser restrictions, allowing output to continue to grow. New orders also piled up amid increased customer demand, he added.
Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said the market priced in progress in talks between Russia and Ukraine, which caused a decline world oil prices during the week.
Bloomberg reported that oil prices posted their biggest weekly drop on Friday.
During the week, representatives from Ukraine and Russia met in Turkey for their peace talks. Market players were also appeased when US President Joseph R. Biden launched his plan to release 1 million barrels of oil a day for six months from their strategic reserves to ease supply problems during the war. .
West Texas Intermediate fell more than $14 on Friday from the previous week, which was the highest since 2011.
Looking ahead to the week, Asuncion said the market will look at trade data due out this week as a wider deficit could weaken the peso.
February trade data will be released on April 8. The country’s trade gap widened to $4.696 billion in January from $2.878 billion inIfcited a year earlier.
Meanwhile, Mr. Ricafort said that the market will also take into account the development of inflation in March. This will be reported by the Philippine Statistics Authority on April 5.
A Business world A poll of 18 analysts gave a median estimate of 4% for last month’s consumer price index (CPI), closer to the upper end of the 3.3% to 4.1% projection. the central bank. If realized, this would be faster than the 3% CPI in February and is on the upper end of the Bangko Sentral ng Pilipinas’ 2-4% target.
Analysts said the massive rise in oil prices likely caused food and transportation costs to rise faster.
For this week, Ricafort gave a forecast range of P51.40 to P51.90 against the dollar, while Asuncion expects the local unit to move between P51.50 and P52. — Noble LWT with Bloomberg