Peso up on consolidation ahead of data

THE PESO went up against the dollar on Wednesday as it consolidated ahead of the inflation data release on Friday.
The local unit closed at P54.18 versus the dollar on Wednesday, up seven centavos from the previous close of P54.25. The peso opened flat at P54.25, while it traded as high as P54.17-per-dollar intraday. Its worst showing stood at P54.27 versus the greenback.
Trading volume grew to $725.2 million from the $655.4 million that switched hands the previous day.
A foreign exchange trader said on Wednesday that the peso strengthened as it traded within a tight range.
“The dollar peso was quite trading in a range. So roughly around 10-cent range,” the trader said in a phone interview yesterday.
The trader added there was “sizeable corporate demand” as the market sentiment is “going for a stronger dollar-peso.”
“In the afternoon, we saw it trading stronger to its close. I think this is a repositioning before the inflation data on Friday as well as the non-farm payroll.”
A faster inflation print last month is widely expected following August’s 6.4%. Market consensus is at 6.8%, according to a ����ý poll’s median forecast for headline inflation in September. This matches the estimate given by central bank and faster than the 6.4% projection by the Department of Finance.
The jobs report in the United States will also be released on Friday.
Meanwhile, another trader said the local currency strengthened as the Bangko Sentral ng Pilipinas approved the implementing guidelines of the Currency Risk Protection Program.
“This contributed to the positive sentiment towards the currency,” the second trader added.
For Thursday, the first trader expects the peso to move between P54.15 and P54.30, while the other gave a P54.10-P54.40 range.
“The peso might weaken again due to caution ahead of the inflation report on Friday,” the second trader said. — K.A.N. Vidal