Peso softens on Chinese economic data

The Philippine peso failed to sustain its strength against the US dollar on Thursday, dragged by weaker-than-expected Chinese economic data.

The local currency lost 13.5 centavos to close at P52.650:$1 Thursday from P52.515:$1 Wednesday.

“The peso weakened today on global risk-off sentiment, following the weaker-than-expected Chinese manufacturing data which increased fears of a global growth slowdown this year,” Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said.

According to a report by Reuters, China’s economy remains a major concern for markets, as manufacturing activity declined for the first time in 19 months last December.

Inflation data may influence the peso-dollar market, Dumalagan said. “The peso might find a boost on expectations of a softer December inflation reading tomorrow.”

The Philippine Statistics Authority is scheduled to release its inflation report on Friday. —VDS, GMA News