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Peso strengthens on hot money data

peso strengthens on hot money data - Peso strengthens on hot money data

The peso strengthened on Friday after central bank data showed net outflows of foreign portfolio investments fell month-on-month in August.

The local unit closed at P48.46 against the dollar on Friday, appreciating from Thursday’s P48.56 close.

The peso opened the Friday’s session at P48.55 versus the dollar, also its weakest showing. Its intraday best was at P48.43.

Dollars traded rose to $713.5 million on Friday from $585.15 million on Thursday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso strengthened as sentiment improved with the report of lower net foreign portfolio investments outflow in August.

The Bangko Sentral ng Pilipinas reported a $127-million outflow in August, lower than the $453 million outflow in July. 

A trader said in an email the peso rose as investors expect the US employment rate to steady despite continued rise in cases of the coronavirus disease 2019 abroad.

The US Labor Department said claims for job benefits grew to 870,000 last week from 866,000 a week earlier. Meanwhile, the US Centers for Disease Control and Prevention reported nearly 7 million COVID-19 cases across the states.

For Monday, Mr. Ricafort expects the peso to move from P48.40 to P48.55, while the trader sees the local currency to range from P48.45 to P48.60. — KKTJ

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