THE PESO declined against the greenback on Thursday on weak US industrial production and cautious trading ahead of the release of US jobless claims data.
The local unit closed at P49.97 per dollar on Thursday, down by 18 centavos from its P49.79 finish on Wednesday, data from the Bankers Association of the Philippines showed.
The peso opened Thursday’s session at P49.72 per dollar. Its weakest point was at P50.02, while its intraday best was at P49.70 versus the greenback.
Dollars exchanged rose to $1.273 billion on Thursday from $654.8 million on Wednesday.
The peso depreciated on data showing slower US factory production, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
The US Federal Reserve on Wednesday said manufacturing output inched up by 0.2% in August, Reuters reported, slower than the upwardly-revised 1.6% expansion in July.
Hurricane Ida likely reduced manufacturing output by 0.2 percentage point as it led to plant closures for petrochemicals, plastic resins and petroleum refining, the Fed said.
Meanwhile, a trader said investors were cautious ahead of the release of the weekly initial jobless claims report expected overnight.
For today, Mr. Ricafort expects the local unit to move from P49.85 to P50.05 per dollar, while the trader gave a forecast range of P49.90 to P50.10. — with Reuters