MANILA, Philippines —The peso returned to the 55:$1 level on Friday, as investor concerns over falling stock prices and sluggish jobs data in the United States dealt a blow to the greenback.
The local currency ended this week’s trading at 55.92 per US dollar, 20 centavos stronger than its previous closing of 56.12:$1. Its best intra-day showing stood at P55.89:$1.
Sought for comment, Domini Velasquez, chief economist at China Banking Corp., said the dollar had weakened amid various investor concerns in the United States.
READ: Dollar headed for weekly loss; US job data in focus
“Concerns about US’ regional banks and tumbling share prices led to a weaker US dollar,” Velasquez said.
“Market participants are also anticipating weaker jobs data (nonfarm payrolls) to be released on [Friday night],” she added.
The last time that the peso had flirted with the 55-level against the US dollar was on Jan. 19 this year, when it closed at 55.97:$1.
So far, the peso is trading within the 55 to 58:$1 range projected by the Marcos administration for this year.
That forecast was set on the assumption that imports would return to growth mode at 7 percent in 2024—from a projected 3-percent contraction in 2023—on the back of stronger infrastructure investments that could push up inbound shipments of construction materials.
Meanwhile, the Bangko Sentral ng Pilipinas is currently developing a framework to curb excessive foreign exchange market intervention.