MANILA, Dec. 2 (PNA) — The peso strengthened against the United States dollar on Monday and is seen to remain this way until Friday on account of the volume of data set for release this week that is expected to be on the US dollar’s disadvantage.
It gained P0.10 to end the day at P43.655 from P43.76 Friday last week.
A trader said corporate demand was noticeable in the morning trade on account of a shortened month because of the holidays.
Higher flows on account of the seasonal flows for the Christmas season as well as inflows for the victims of typhoon “Yolanda” also pushed the peso stronger.
Thus, the local unit traded between its starting trade and P43.65, bringing the average for the day at P43.68.
Volume of trade reached US$ 598 million, higher than the US$ 560.6 million at the previous trading day.
For the rest of the week, the peso is expected to trade between P43.50 and P43.80.
The trader said this week’s foreign exchange trading will be data-driven, citing that among the reports to be released this week are on the US’ personal consumption, home sales, non-farm payrolls, and gross domestic product, as well as the policy decision of the Bank of England (BOE) and the European Central Bank (ECB).
Other factors are the policy meeting of the Federal Reserve in the middle of this month and the outlook on US’ fiscal situation.
Some analysts expect the Fed to start scaling back its bond-buying program this month as more positive signs from the US economy come out. (PNA)