Upbeat US data gives dollar edge vs. peso

The peso depreciated further on Wednesday, as the greenback regained its trading edge after the release of “upbeat” economic data in the US.

The local currency closed at P47.670:$1 or 10 centavos softer than the 47.570 on Tuesday.

“The dollar continues to regain some luster as economic data has remained relatively upbeat in the US despite the global turmoil,” Nicholas Antonio T. Mapa, economist at the Bank of the Philippine Islands (BPI), said in an emailed commentary.

“Wall Street minted its second straight session of solid gains on Tuesday, as investors snatched up beaten-down consumer discretionary, industrial and tech shares,” Reuters reported.

“Investors also loaded up on the greenback ahead of the release of the most recent FOMC (Federal Open Market Committee) meeting minutes,” Mapa said.

The summary of the FMOC meeting is expected to be released this week.

“Meanwhile, the Fed President spoke overnight expressing patience in hiking rates although they did not rule out raising rates later in the year, given moderately improving economic conditions,” Mapa said. – Jon Viktor Cabuenas/VS, GMA News