Peso slips as traders wait for US economic data, Fed policy cues

The peso weakened against the dollar on Tuesday as markets looked to delayed US economic releases for direction on the US Federal Reserve’s policy path.

It closed at PHP 58.985 a dollar, slipping 5.4 centavos from PHP 58.931 on Monday, based on Bankers Association of the Philippines data posted on its website.

It opened at PHP 59 and moved from PHP 58.888 and PHP 59.08. Turnover reached USD 1.464 billion, up from USD 1.316 billion on Monday.

A broadly firmer dollar reflected investor caution ahead of US labor indicators that might guide the Fed’s next steps, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

“The dollar-peso pair held near PHP 59 as market players await Fed cues and the release of US job data, coupled with the ongoing political crisis in the Philippines,” a trader said by telephone.

Political uncertainty has intensified after President Ferdinand R. Marcos, Jr. tapped Finance Secretary Ralph G. Recto to serve as executive secretary, while Frederick D. Go moved to the Finance department.

The reshuffle follows the resignations of Executive Secretary Lucas P. Bersamin and Budget Secretary Amenah F. Pangandaman amid investigations into alleged irregularities in public spending tied to flood control and infrastructure projects.

The trader expects the peso to trade from PHP 58.80 to PHP 59.10 on Wednesday. Mr. Ricafort forecasts a range of PHP 58.85 to PHP 59.05. — A.M.C. Sy