Peso climbs to three-month high

The peso climbed to a three-month high against the dollar on Tuesday on expectations of softer US consumer price index (CPI) data for February.

The local unit closed at PHP 55.31 per dollar on Tuesday, strengthening by six centavos from its PHP 55.37 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s strongest close in more than three months or since its PHP 55.30-per-dollar finish on Dec. 7.

The peso opened Tuesday’s session weaker at PHP 55.42 against the dollar. Its worst showing was at PHP 55.51, while its intraday best was at PHP 55.30 versus the greenback.

Dollars exchanged rose to USD 1.13 billion on Tuesday from USD 1.09 billion on Monday.

“The peso strengthened ahead of a likely softer US consumer inflation report overnight,” a trader said in an e-mail.

The dollar was also mostly weaker ahead of the US CPI release as it could affect the US Federal Reserve’s next move, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader sees the peso moving between PHP 55.15 and PHP 55.40 per dollar, while Mr. Ricafort sees it ranging from PHP 55.25 to PHP 55.45. — AMCS