Peso trades flat as Bangko Sentral unloads dollars

The peso traded flat on Friday as Bangko Sentral ng Pilipinas sold some dollars to stabilize its currency amid the dollar strength anchored on positive US economic data.

 

The local currency eased by P0.005 centavo to 44.810:$1 from 44.805 Thursday.

 

The central bank sold some $100 million to push the peso off the highs following the stronger dollar on positive US data, Security Bank Corp. trader Jennie Cao-Melon told GMA News Online.

 

"The local currency is in consolidation on the weaker hand side against the dollar," she said.

 

The positive US manufacturing data and the decrease in jobless claims propped the dollar, MetisEtrade Inc. senior analyst Guaya Melgar said in an e-mailed commentary.

 

"The Markit Economics flash manufacturing index showed the US market continued to expand at a robust pace...  Aside from this, the 4-week average jobless claims in the US decreased by 3,000 to 281,000 based on last night’s release," she said.

 

The reported Ebola case in New York also drove investors on the side of caution as reflected in the peso-dollar's tight range of 44.88:$1 to 44.71:$1 , Cao-Melon said.

 

"The additional Ebola case is still being monitored. It would have more effects if there were any reports of casualties," she noted.

 

Most emerging Asian currencies fell on Friday, paring some of their weekly gains, as risk sentiment suffered after a doctor in New York tested positive for Ebola, the first case in America's largest city, Reuters reported.

 

More movement is seen in the foreign exchange market next week as the US Federal Reserve is due to release its statement on Wednesday, Melgar noted.

 

"This could enlighten investors on the future direction of US monetary policy," she said.

 

"Investors should focus on looking for signals on the possible schedule of an interest rate hike," she added. – VS, GMA News