Profit-taking drags peso back to P51:$1 level
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 17 Jul 2019 16:19:31 +0000
The peso erased the gains it posted the previous day as news of positive US economic indicators resulted in profit-taking, dragging the local currency back to the P51:$1 level on Wednesday.
The local unit, which opened at P50.95 against the greenback, lost 23 centavos to close at P51.13:$1.
“The dollar rallied after better-than-expected reports on US retail sales and factory output provided signs of steady economic growth,” BDO Unibank Inc. chief market strategist Jonathan Ravelas told The Manila Times.
US Commerce Department has reported that retail sales increased by 0.4 percent in June. Growth in May was slightly revised to 0.4 percent from the previously reported 0.5-percent expansion.
Meanwhile, US Federal Reserve data showed that manufacturing output climbed by 0.4 percent in June from May’s 0.2-percent increase.
“This caused some profit-taking on the local currency,” Ravelas said.
“USD/PHP at 51.13 is on track to test the 50/50.50 levels in the near-term. Look for another attempt to break below the 51 [level] to resume the assault 50/50.50 levels,” he added.
Last year, the peso ended at P52.58 versus the dollar, sharply down from its 2017 close of P49.93:$1.
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