Peso rebounds on strong US jobs data

THE PESO strengthened on the back of improved US jobs data. — BW FILE PHOTO

THE PESO rebounded versus the dollar on Thursday following stronger US jobs data.

The local unit closed at P50.56 per dollar on Thursday, appreciating by 32 centavos from its 50.88 finish on Wednesday, based on data from the Bankers Association of the Philippines.

The peso opened Thursday’s session weaker at P50.80 per dollar. Its weakest showing was at P50.86, while its intraday best was at P50.55 against the greenback.

Dollars traded increased to $988.08 million on Thursday from $963 million on Wednesday.

The peso strengthened from its previous close on better risk appetite following improvements in the US job market, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The ADP National Employment Report released on Wednesday showed private payrolls increased by 568,000 jobs in September, higher than the 428,000 estimate by economists in a Reuters poll.

This also surpassed the 340,000 jobs created in August.

Meanwhile, a trader said peso-dollar trading was also affected by developments in the US Congress’ discussions on the debt ceiling.

Reuters reported that Senator Mitch McConnell, a Republican, floated a plan for his party to allow an extension of the federal debt ceiling into December.

The White House has not yet received a formal offer for the said extension, spokeswoman Jen Psaki said.

Without legislative action to raise the $28.4-trillion debt limit, the Treasury department said it would run out of ways to meet all its obligations by Oct. 18.

For Friday, both Mr. Ricafort and the trader gave a forecast range of P50.45 to P50.65 per dollar. — LWTN with Reuters