China data, US Fed meeting weaken PHL peso

A string of negative news weakened the peso on Thursday, traders said. 

 

The local currency lost 16 centavos to close at 44.78:$1 versus 44.62:$1 Wednesday. 

 

News from abroad weakened the peso, a currency trader at one of the Top 5 banks said, citing the manufacturing data in China and minutes of the US Federal Open Market Committee meeting.

 

Reuters reported that a private on China factories gave disappointing results, fueling concerns over growth prospects in the world's second largest economy. 

 

Minutes of the FOMC meeting suggested that some officials felt an increase in the Fed Funds rate may be required earlier than anticipated, according to BPI Asset Management. 

 

These factors led fund managers to accumulate dollars. "There are long dollar positions," a trader said. 

 

Another trader from a foreign bank in Manila said a deficit in the Philippine balance of payments in January "added to the negative sentiment."

 

Central bank data released late Wednesday showed a payments deficit of $4.48 billion last month, a turnaround from the surpluses of $2.043 billion in January and $419 million last December. – VS, GMA News