Peso rises on weak US jobs data

THE PESO continued to climb against the dollar on Thursday after a weaker-than-expected US private payrolls report.

The local unit closed at P55.30 per dollar on Thursday, inching up by less than a centavo from P55.305 on Wednesday, based on Bankers Association of the Philippines data.

This was the peso’s strongest close in over four months or since its P55.19-per-dollar finish on Aug. 2.

The peso opened Thursday’s session at P55.37 against the dollar. Its intraday best was at P55.26, while its weakest showing was at P55.42 versus the greenback.

Dollars exchanged rose to $1.21 billion on Thursday from $1.03 billion on Wednesday.

“The peso appreciated following the weaker-than-expected US private payrolls report,” a trader said in an e-mail.

US private payrolls increased less than expected in November as the labor market gradually cools, Reuters reported.

Private payrolls rose by 103,000 jobs last month, the ADP National Employment Report showed on Wednesday. Data for October was revised lower to show 106,000 jobs added instead of 113,000 as previously reported. Economists polled by Reuters had forecast private payrolls rising 130,000.

The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the release on Friday of the Labor department’s more comprehensive and closely watched employment report for November.

The ADP report has been a poor gauge for predicting the private payrolls count in the employment report.

Philippine financial markets will be closed on Friday for a non-working day in celebration of the Feast of the Immaculate Conception. — with Reuters