Peso slips as traders wait for US economic data, Fed policy cues – BusinessWorld Online
THE PESO weakened against the dollar on Tuesday as markets looked to delayed US economic releases for direction on the US Federal Reserve’s policy path.
It closed at P58.985 a dollar, slipping 5.4 centavos from P58.931 on Monday, based on Bankers Association of the Philippines data posted on its website.
It opened at P59 and moved from P58.888 and P59.08. Turnover reached $1.464 billion, up from $1.316 billion on Monday.
A broadly firmer dollar reflected investor caution ahead of US labor indicators that might guide the Fed’s next steps, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
“The dollar-peso pair held near P59 as market players await Fed cues and the release of US job data, coupled with the ongoing political crisis in the Philippines,” a trader said by telephone.
Political uncertainty has intensified after President Ferdinand R. Marcos, Jr. tapped Finance Secretary Ralph G. Recto to serve as executive secretary, while Frederick D. Go moved to the Finance department.
The reshuffle follows the resignations of Executive Secretary Lucas P. Bersamin and Budget Secretary Amenah F. Pangandaman amid investigations into alleged irregularities in public spending tied to flood control and infrastructure projects.
The trader expects the peso to trade from P58.80 to P59.10 on Wednesday. Mr. Ricafort forecasts a range of P58.85 to P59.05. — A.M.C. Sy