Peso weakens ahead of US jobs data

The peso retreated against the dollar on expectations of upbeat US employment data and as oil prices continued to rise.

The peso closed at P50.58 to the dollar Friday, weaker than its P50.56 finish Thursday, according to the Bankers Association of the Philippines.

It was stronger than its P50.79 close a week earlier.

The peso opened the session at P50.50. The low was P50.61, while the high was P50.37.

A trader attributed the peso’s weakening to cautious sentiment ahead of the US employment report.

“Fed taper views are likely to strengthen amid market expectations of a strong US labor report,” he said in an email.

The US Labor Department will release jobs data for September on Friday.

A Reuters poll put economist expectations at 200,000 to 700,000 jobs added in September. In August, 235,000 jobs were added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the peso’s weakness was also caused by safe-haven demand for the dollar as oil prices increased.

Reuters on Friday reported that fuel prices increased nearly 5% this week after some industries started switching to oil from gas amid uncertainty whether the US government would release oil from its strategic reserves. —

Luz Wendy T. Noble