Peso rebounds ahead of US payrolls data

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THE PESO rebounded versus the dollar on Friday due to profit-taking ahead of the release of US non-farm payrolls data.

Peso notes

The local currency finished at P50.58 against the greenback to cap the week, jumping nine centavos from its P50.67-per-dollar finish on Thursday.

The peso opened the session at P50.64 versus the dollar. It dropped to as low as P50.68 against the greenback, while its intraday high was at P50.54.

Dollars traded rose to $514.7 million from the $429.9 million logged on Thursday.

“[S]ome players were just trying to reduce dollar positions ahead the NFP release, although it is still expected to probably be higher,” a trader said.

The trader said the US economy is expected to have created around 180,000 jobs last month.

If realized, this would be higher than the 138,000 recorded in May, according to US Bureau of Labor Statistics data.

“If it’s lower than 180,000, then the dollar would probably correct a bit after this, given that they’re just trying to lower their base ahead of that event,” the trader added.

The peso has been trading above the P50 level since late last month, but Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla said that it is not a cause for concern.

“It’s not a concern. BSP has always said it’s market pricing, and our concern is primarily in terms of excessive volatility… We want the exchange rate to continuously reflect market conditions and underlying fundamentals,” he told reporters on Friday. — EJCT