EconomyEditor's PickPeso down ahead of US retail sales data

November 16, 2021

THE PESO weakened ahead of the release of US retail sales data. — BW FILE PHOTO

THE PESO depreciated versus the greenback for the second straight day on Tuesday amid preference for the dollar on expectations of strong US retail sales data.

The local unit closed at P50.30 per dollar on Tuesday, shedding 11 centavos from its P50.19 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s session stronger at P50.15 per dollar, which was also its intraday best. Meanwhile, its weakest showing during the session was at P50.35 versus the greenback.

Dollars traded picked up to $1.391 billion on Tuesday from $1.156 billion on Monday.

The peso depreciated versus the greenback ahead of US retail sales report, which is expected to be upbeat, a trader said in an e-mail.

The US Commerce department will report the October retail sales data overnight. In September, US retail sales increased by 0.7%, with the biggest gains recorded for sporting goods and hobbies, and general merchandise.

The market also factored in the impact of the wider implementation of the alert level system in the country, with most areas now under more relaxed restrictions, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“This further support economic recovery prospects that could entail some increase in importation activities,” he said in a Viber message.

For Wednesday, Mr. Ricafort gave a forecast range of P50.15 to P50.35, while the trader expects the local unit to move within P50.20 to P50.45 against the dollar. — L.W.T. Noble

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: SmartPeopleMail.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartPeopleMail. All Rights Reserved.

IT'S YOUR OPPORTUNITY OF THE YEAR!
Subscribe for FREE today and get your daily shot of smart news about the Economy and Investing.
We are dedicated to keeping any data we collect from you — safe and secure. Here you can read our privacy policy.