THE PESO weakened to the P58-per-dollar level on Monday following strong US jobs data and amid tensions in the Middle East.
The local unit closed at P58.01 per dollar on Monday, weakening by 27.5 centavos from its P57.735 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session weaker at P57.90 against the dollar, which was already its intraday best. Its worst showing was at P58.13 versus the greenback.
Dollars exchanged went down to $1.33 billion on Monday from $1.72 billion on Friday.
“The dollar strengthened against the peso as the market responded to the higher-than-expected figure for US nonfarm payrolls released last Friday,” a trader said by phone.
US job growth surged in November after being severely hindered by hurricanes and strikes, but a rise in the unemployment rate to 4.2% pointed to an easing labor market that should allow the Federal Reserve to cut interest rates again this month, Reuters reported.
Nonfarm payrolls increased by 227,000 jobs last month after rising by an upwardly revised 36,000 in October, the Labor department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls would gain 200,000 jobs following a previously reported rise of 12,000 in October.
The dollar was mostly stronger on Monday on safe-haven buying due to tensions in Syria after rebels seized Damascus and President Bashar al-Assad fled to Russia, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Tuesday, the trader sees the peso moving between P57.80 and P58.20 per dollar, while Mr. Ricafort expects the local unit to range from P57.90 to P58.10. — AMC Sy with Reuters
