Peso ends on a weak note Friday

The peso weakened on Friday as dealers lightened their Philippine currency holdings for longer positions in dollars ahead of the US nonfarm payroll data to be released tonight in the US. 

 

The Philippine unit shed 10 centavos to 42.24:$1 from 42.14:$1 Thursday.

 

“Dealers were buying back dollars ahead of the nonfarm payrolls,” a trader at a local bank said. He was referring to the US Bureau of Labor Statistics report on the number of paid American workers in any business, excluding those employed in farms, nonprofit organizations, private households and general government. 
 

“There was a general lightening up positions on peso, as most were short-covering ahead of the nonfarm payrolls,” a second trader said. 

 

Currency traders, fund managers and investors have taken a cautious stance over US economic data which serve as clues to the possible scaling back of the Federal Reserve's $80-billion monthly bond buying program. 

 

Speculations about the Fed reducing the amount its economic stimulus eroded the appeal of riskier peso denominated assets, prompting investors to go for safe heaven dollar assets. As a consequence, the Asian currencies have exhibited a general weakness in the last two weeks.

 

“Everyone's closely watching any data from the US,” the second trader said. 

 

Both traders noted the Bangko Sentral ng Pilipinas bought at least $50 million in Friday's trading, which helped temped the peso's strength. 

 

Some $904.3 million changed hands on Friday, from $1.067 billion  Thursday. — VS, GMA News