Peso returns to P52:$1
THE peso returned to the P52:$1 level on Monday, recovering to an almost two-month high on the back of a “disappointing” US jobs report.
In line with the stronger performance of other currencies in the region, the peso opened at P53.1 against the greenback and and rose to as high P52.84 during the day.
It closed at P52.85 per dollar, up 30 centavos from Friday and its highest since a P52.70:$1 finish on June 8, 2018.
“Disappointing US economic reports would have a positive impact on Asian EM (emerging market) currencies,” ING Bank Manila senior economist Joey Cuyegkeng said in a comment.
“July headline non-farm payrolls disappointed together with more moderate wage increase despite lower unemployment and underemployment rates,” he added.
The US Bureau of Labor Statistics reported that July non-farm payrolls had missed expectations, adding just 157,00 jobs to the economy. Meanwhile, unemployment in US dipped to 3.9 percent during the months from 4 percent in June.
On the other hand, average hourly earnings for all employees on private non-farm payrolls in the US rose by 71 cents in July from a year ago.
The peso, described as Asia’s worst-performing currency this year, fell to the P53:$1 level in June on concerns over the country’s widening current account deficit and the prospect of higher US interest rates.
Economic managers have raised their peso-dollar exchange rate assumptions to P50-53:$1 for 2018-2022 from P49-52.
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