Peso strengthens after steady May inflation reading
THE PESO strengthened against the dollar on Friday after May inflation steadied at 4.5%.
The peso closed at P47.75 against the dollar Friday after finishing Thursday at P47.825, according to the Bankers Association of the Philippines.
Week-on-week, the peso strengthened from its P47.80 close on May 28.
Since the start of 2021, the peso has appreciated by 0.6%. It closed at P48.023 on the final trading day of 2020.
The peso opened the Friday session at P47.83 and hit a low of P47.83. The intraday high was P47.73.
Dollar trading volume fell to $718.10 million Friday from the $820.06 million Thursday.
Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said the steady inflation reading was positive for the peso.
The May reading was the third month in which consumer price growth remained steady, the Philippine Statistics Authority (PSA) said Friday.
The 4.5% outcome for May is still elevated from the year-earlier reading of 2.1%.
A trader who asked not to be identified said May inflation remained within market expectations. The 4.5% reading is in line with the median estimate from a BusinessWorld poll of analysts conducted late last week.
Mr. Ricafort added that peso was also supported by continued net foreign buying on the stock market, running for six trading days. Foreign positions came in at a net buy of $22.3 million Friday after Thursday’s net buying level of $39.7 million.
On Monday, RCBC’s Mr. Ricafort forecast range the peso’s range at between P47.70 and P47.85. Next week, he expects a range of P47.60 to P47.90. — Isabel B. Celis