US data, Bangko Sentral support help peso recover from three-day slump

The peso recovered from a three-day slump against the dollar to end the week stronger after markets calmed on positive US data and Bangko Sentral ng Pilipinas continued supporting its currency.

 

The local currency strengthened by 21.5 centavos to 44.565:$1 from 44.78 Thursday.

 

Risk- on sentiment was evident in the forex market given the lack of bad news abroad, Andre Ibarra, Security Bank Corp. first vice president for the Treasury Group, told GMA News Online.

 

"Markets were calm today because we haven't heard of any bad news," he said.

 

In the US, Markit's preliminary US Manufacturing Purchasing Managers Index showed factory activity accelerated at its fastest pace in nearly four years in February, a bullish economic indicator following a string of weaker-than-expected reports, Reuters reported.

 

Most Southeast Asian currencies posted weekly gains on Friday as solid US data supported risk appetite, the wire service said in a separate report.

 

Given the strength of peer market currencies, the peso mirrored gains against the dollar, a local trader said in a separate interview.

 

"We tracked the strategy of offshore players with selling interest," the trader said.

 

Helping the peso recoup losses in the past couple of days was Bangko Sentral Governor Amando Tetangco Jr.'s comment that the central bank will curb volatility in the market, Ibarra said. 

 

Tetangco told reporters in a conference in Sydney the central bank stands ready to intervene again to calm volatility in financial markets if needed.

 

Ibarra said the peso is expected to slightly appreciate, but still trading between 44.40 and 44.80 next week. – VS, GMA News