THE PESO rose versus the dollar on Friday on stronger manufacturing data and expectations of higher remittances ahead of the holidays.
The local unit closed at P50.79 per dollar on Friday, appreciating by 21 centavos from its P51 finish on Thursday, based on data from the Bankers Association of the Philippines.
However, it weakened by 14 centavos from its close of P50.65 a week earlier.
The peso opened Friday’s session slightly stronger at P50.96 a dollar. Its weakest showing was at P50.97, while its intraday best was at P50.78 versus the greenback.
Dollars exchanged dropped to $882.16 million on Friday from $1.104 billion on Thursday.
The peso rose on data showing improving factory activity in the country, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.
The Philippines Manufacturing Purchasing Managers’ Index stood at 50.9 in September, beyond the 50-mark that separates expansion from contraction, IHS Markit reported on Friday. This is a turnaround from the 46.4 logged in August and is the best reading since the 52.2 in March.
IHS Markit attributed the improvement to eased restrictions last month following the strict lockdown in August.
Mr. Ricafort added that the peso appreciated due to expectations of a seasonal increase in remittance inflows ahead of the Christmas holidays.
Meanwhile, a trader said the peso strengthened on market preference for the local unit after US initial jobless claims increased for the third straight week.
Reuters reported that more Americans filed for jobless claims last week amid more people in California being enrolled to another assistance program.
Initial claims for state unemployment benefits increased by 11,000 to a seasonally adjusted 362,000 for the week ended Sept. 25, marking the third straight weekly increase. — LWTN with Reuters