Peso up on strong manufacturing PMI
THE PESO strengthened versus the greenback on Tuesday on strong manufacturing data and gains in the stock market.
The local unit closed at P51.23 a dollar on Tuesday, appreciating by four centavos from its P51.27 finish on Monday, based on data from the Bankers Association of the Philippines.
The peso opened Tuesday’s session at P51.24 per dollar. Its weakest showing was at P51.295, while its intraday best was at P51.21 versus the greenback.
Dollars exchanged increased to $942.21 million on Tuesday from $780.5 million on Monday.
A trader said the peso rose as manufacturing data released on Tuesday showed improved activity.
The Philippine Purchasing Managers’ Index (PMI) was at 52.8 in February, above the 50-mark that separates expansion from contraction, IHS Markit said on Tuesday. This is higher than the 50 in January and the highest since December 2018.
IHS Markit economist Shreeya Patel said easing restrictions as well as improvements in material availability helped improve factory activity last month.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso strengthened following gains in the stock market.
The Philippine Stock Exchange index rose by 93.60 points or 1.28% to end at 7,404.61 on Tuesday, while the all shares index gained 31.96 points or 0.82% to close at 3,921.05.
For Wednesday, Mr. Ricafort gave a forecast range of P51.10 to P51.30 per dollar, while the trader expects the local unit to move within P51.05 to P51.25. — L.W.T. Noble
