Philippine peso strengthens anew against dollar
MANILA, Philippines – The Philippine peso stayed the course on its upward swing against the US dollar on Monday, November 28, mainly as traders took profits from the strengthened greenback.
The local currency ended stronger for the 2nd straight trading day, closing at P49.710:$1 on Monday, following Friday's P49.840:$1.
"The peso appreciated today primarily because of profit taking," Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said in an email interview.
"Trading activity was light as investors were waiting on the sidelines ahead of the US gross domestic product (GDP) growth report and the US non-farm payrolls data," he added.
Last Thursday, November 24, the Philippine peso closed at a fresh 8-year low and at one point, traded above P50 to the US dollar, amid a broad sell-off in emerging markets due to the strengthened greenback.
That day, the local currency closed at P49.98:$1, its lowest level since November 24, 2008 – the height of the global financial crisis meltdown.
"For tomorrow, the exchange rate may move within the P46.55:$1 to P49.85:$1 range," Dumalagan said.
According to the economist, the peso might still move sideways, as "investors might refuse to take large bets ahead of key US data."
The US is set to produce revised data on 3rd quarter GDP and a report on consumer confidence on Tuesday, November 29. It is also expected to produce the non-farm payrolls report for November on Friday, December 2. – Rappler.com