WEIGHT has kept its power yesterday to register a maximum of five months, supported by the flows of large funds, although Philippine economic growth has exceeded the expected than expected.
The peso closed at P52.57 against the dollar on Thursday, moving away 38 cents from P52.95 finalized the previous day. This marked the fifth consecutive session when the weight was appreciated against the dollar.
The local unit was usually negotiated stronger when it opened in P52.83, although it played a minimum of P52.485 during the session. He briefly touched P52.85 as a high intraday before settling at the closing.
Two currency traders attributed the sustained appreciation of the weight to the renewed optimism of the market in relation to inflation, driven by the capital flows of offshore investors.
The dollars traded yesterday reached $ 1,353 million, just under $ 1,447 million on Wednesday.
"They say there's an entry for San Miguel Corp., maybe from last week," said a merchant, referring to the cluster tracking offer for his food and beverage unit worth P39.19 million that he has just recently completed.
The trader said the dollar-peso pair was moving lower, but these capital inflows observed in the recent weekend "exaggerated" weight recovery.
A second trader noted that additional inflows probably came from the remittances of Philippine workers abroad, which helped increase the weight.
"The strength of the weight for now is due to annual shipments. It can also be attributed to the market that inflation has decreased," said the second merchant, referring to the constant print of 6.7% in October, which was announced on Tuesday.
On the other hand, the trader said that the growth rate of the third quarter of 6.1% could be treated as a "non-event" by investors, although it slowed down from the rate of 6.2% in the second quarter .
The merchant said that the final result is close to the consensus rate of 6.2% of the market. A BusinessWorld The survey conducted among 15 economists threw a median forecast of 6.3% for the period of July-September.
For Friday, the two traders said the market will look for the United States when the Federal Reserve concludes its two-day policy meeting.
"For the Federal Committee of the Open Market, it has a price that is more than a fabulous tone. Any event other than that can also move the dollar-peso," said the second merchant.
Investors expect broadly that the Fed raises interest rates in another 25 basis points during its December meeting, gathering the previous statements made by US policy makers.
The first operator expects the weight between P52.50 to P52.80 today, while the second sees a P52.55-P52.85 range. – Melissa Luz T. Lopez