The peso gained traction against the dollar yesterday on the back of lower-than-expected jobs report in the US for August.
The peso improved by P0.24 after finishing the week’s first day at 44.24 from last Friday’s 44.48.
“The market welcomed the data last Friday,” BPI lead economist Emilio S. Neri Jr. said.
The US Labor Department announced last Friday the 169,000 increase in non-farm payrolls in the US in the seventh month this year, below market’s expansion of 180,000 expansion.
Neri said this development makes US monetary officials’ job a bit harder once the Federal Open Market Committee decides on the Federal Reserve’s policy rate on September 16, 2013.
He, however, believes to the big possibility of a cut in the US central bank’s US$ 85 million monthly bond purchases next week given that economic reports from the US are generally pointing to an improvement of the world’s largest economy.
Other factors that buoyed the peso include the slight drop in China’s inflation rate last August to 2.6 percent from month-ago’s 2.7 percent and the expectations for a better economy for Japan once it hosts the 2020 Summer Olympics.
The peso is expected to trade between 44.15 and 44.45 today.*PNA