The PESO could appreciate against the dollar this week ahead of the release of US personal consumption expenditure (PCE) indices on Friday and as markets digest comments from the US Federal Reserve.fficials.
The local unit closed at P58.335 per dollar on Friday, weakening 8.5 centavos from the P58.25 FThis was evident from data from the Bankers Association of the Philippines on Thursday.
Still, the peso rose 4.5 centavos week over week from P58.38 per dollar on July 12.
The peso fell on Friday due to broad dollar strength and higher U.S. Treasury yields, Security Bank Corp. Chief Economist Robert Dan J. Roces said. in a Viber message.
The dollar rose against other major currencies on Friday amid mixed signals from the Fedfficials, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort added in a Viber message.
This week, the peso may remain within the range, with an upward trend ahead of the release of the June PCE data on July 26 (Friday), which willFcould influence the Fed’s policy path, Mr. Roces said.
The June PCE price index is expected to have risen 0.1% month-on-month, according to a Reuters poll.
Meanwhile, Mr. Ricafort expects the peso to move between P58.25 and P58.45 per dollar on Monday. — AMCS