Peso down ahead of US inflation data – BusinessWorld Online

THE PESO weakened versus the greenback on Tuesday due to expectations of faster US inflation and losses in the local stock market.

The local unit closed at P52.10 per dollar on Tuesday, losing five centavos from its P52.05, Bankers Association of the Philippines data showed.

The peso opened at P52.15 versus the dollar on Tuesday. Its weakest showing was at P52.29, while its intraday best was at P52.06 against the greenback.

Dollars exchanged declined to $1.416 billion on Tuesday from $1.635 billion on Monday.

“The peso weakened amid expectations of a higher US consumer inflation report for March,” a trader said in an email.

The March US consumer price index report was scheduled to be released overnight. US inflation in February stood at a 40-year high of 7.9%.

Last month, the Federal Reserve increased interest rates by a quarter percentage point to begin its tightening cycle in response to surging inflation.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso depreciated following the decline in the local stock market.

The Philippine Stock Exchange index shed 92.93 points or 1.33% to close at 6,895.36, while the wider all shares index declined by 42.37 points or 1.14% to 3,685.84.

For Wednesday, Mr. Ricafort gave a forecast range of P51.95 to P52.15 per dollar, while the trader expects the local unit to move within P52 to P52.20. — L.W.T. Noble