THE Philippine peso would likely be range-bound against the dollar this week, analysts said, as the market awaits inflation data releases both at home and in the US.
It closed at P56.077 a dollar on Friday, weakening by 11.2 centavos from its close on Thursday, according to Bankers Association of the Philippines data posted on its website. Week on week, the peso likewise sank by 38.7 centavos from its P55.69 finish on Sept. 20.
The peso traded sideways against the dollar on Friday after the US economic growth report came out steady from the previous period, Robert Dan J. Roces, chief economist at Security Bank Corp., said in a Viber message.
“Also, risk-supportive sentiment from China stimulus measures may be met by month- or quarter-end dip buying interests,” he added.
The third-quarter report dampened expectations of a rate cut by the US Federal Reserve and led to a weaker dollar, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
Mr. Roces noted that this week, the peso would likely move depending on the US consumer price index (CPI) report for August.
Mr. Ricafort said the foreign exchange market would also look at Philippine inflation data due for release on Friday.
Inflation likely eased to 2.5% in September, according to the median estimate of 15 analysts in a BusinessWorld poll, from 3.3% in August and 6.1% a year ago. This could be the slowest in nearly four years.
Mr. Ricafort expects the peso to trade from P 55.75 to P56.25 a dollar this week. — Aaron Michael C. Sy