Peso tracks dollar’s broad weakness

THE PHILIPPINE PESO rose against the dollar on Monday, tracking the greenback’s broad weakness after US personal consumption expenditures for August came out cooler than expected.

It closed at P56.03 a dollar, 4.7 centavos stronger than its P56.077 close on Friday, Bankers Association of the Philippines data showed.

The peso opened at P56.03, appreciated to as much as P55.93 and weakened to as much as P56.075 against the greenback. Dollars exchanged went down to $1.29 billion from $1.47 billion on Friday.

The peso tracked the dollar’s broad dollar weakness at the weekend due to the cooler-than-expected US personal consumption data, a trader said by phone.

The personal consumption expenditures price index, the Fed’s favored inflation measure, rose by 0.1% in August after a 0.2% gain in July.

In the 12 months through August, the index rose 2.2% after rising 2.5% in July, Reuters reported on Friday.

The dollar index was weaker at 100.4, while most Asian currencies gained, led by the Malaysian ringgit and Thai baht, which were both up by 0.5%.

Investors were also cautious as the market awaited the US inflation data later this week, the trader said.

Lower global crude oil prices have also supported the peso, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Brent crude futures for November delivery gained 1.56% or $1.12 to $73.10 a barrel as of 6:11 GMT. That contract was due to expire on Monday, and the more active contract for December delivery climbed by 1.45% or $1.04 to $72.58.

US West Texas Intermediate crude futures advanced 1.36% or 93 cents to $69.11 a barrel. Prices also rose on Friday, though for the week, Brent fell by 3% and WTI fell by 5%.

The trader expects the peso to trade at P55.80 to P56.20 a dollar on Tuesday, while Mr. Ricafort sees it at P55.90 to P56.10. — Aaron Michael C. Sy