Connect with us

Hi, what are you looking for?


Peso continues to rally vs dollar on slower-than-expected inflation print

THE PESO appreciated versus the greenback for the fifth straight day as inflation was steady in April and as the daily tally of coronavirus cases remained low.

The local unit closed at P48.025 per dollar on Wednesday, appreciating by 1.3 centavos from its P48.038 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso’s close on Wednesday was its best since Feb. 15’s finish of P47.93 per dollar.

The local unit opened the session at P48.03 versus the dollar. Its weakest showing was at P48.13, while its intraday best was at P47.96 against the greenback.

Dollars traded jumped to $1.2 billion yesterday from $730.7 million on Tuesday.

The slower-than-expected April inflation print boosted market sentiment and supported the peso, a trader said in an e-mail.

Headline inflation stood at 4.5% for the second straight month in April, the Philippine Statistics Authority (PSA) reported on Wednesday.  However, this was faster than April 2020’s 2.2%.

April headline inflation was slower than the median 4.7% in an analyst poll BusinessWorld conducted late last week and settled within the Bangko Sentral ng Pilipinas’ (BSP) own 4.2-5% estimate.

Year to date, inflation averaged at 4.5%, still above the BSP’s 2-4% target as well as its inflation forecast of 4.2% for the year.

Inflation eased in the indices of food and non-alcoholic beverages at 4.8% in April from 5.8% in March; and alcoholic beverages and tobacco at 12% from 12.1%.

On the other hand, annual increases were noted in housing, water, electricity, gas, and other fuels (1.5% from 0.9%); furnishing, household equipment and routine maintenance of the house (2.1% from 1.9%); health (3.1% from 2.9%); transport (17.9% from 13.8%); communication (0.3% from 0.2%); and restaurant and miscellaneous goods and services (3.4% from 3.1%), PSA data showed.

The easing number of new coronavirus infections also boosted the peso versus the dollar, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The Health department reported 5,685 new coronavirus cases on Wednesday to bring the total to more than 1.073 million. Meanwhile, active cases stood at 66,060.

For Thursday, Mr. Ricafort gave a forecast range of P47.97 to P48.07 per dollar, while the trader expects the local unit to move within the P48 to P48.10 range.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Leading digital solutions platform Globe was recently recognized by the ASEAN Innovative Business Platform (AIBP) for being a trailblazer on environmental, social, and governance...


  Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their...


NEW TAXES may have to be introduced to fund the incoming Marcos administration’s priority projects, but the timing would have to be carefully considered,...


By Revin Mikhael D. Ochave, Reporter AS FERDINAND R. MARCOS, JR. is poised to assume office on June 30, business groups are hoping the...


THE PHILIPPINES may find it more costly to service its foreign debts, as the peso slumped to its weakest value against the US dollar...


By Arjay L. Balinbin, Senior Reporter SPECTRUM USER FEES (SUF), which telecommunications companies described as excessive, are unlikely to be lowered under the Marcos...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.