THE PESO retreated versus the greenback on Friday as the country recorded a wider trade deficit in October and ahead of the release of the latest US inflation report.
The local unit closed at P50.35 per dollar on Friday, weakening by nine centavos from its P50.26 finish on Thursday, data from the Bankers Association of the Philippines showed.
Week on week, the peso appreciated by a centavo from its P50.36 finish on Dec. 3.
The peso opened Friday’s session at P50.28 per dollar, which was also its intraday best. Meanwhile, its worst showing was at P50.39 versus the greenback.
The local unit weakened as the country posted a wider trade deficit, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Data released by the Philippine Statistics Authority on Friday showed the trade deficit widened to $4.01 billion in October from the $2.04-billion gap a year earlier. It was also the biggest deficit since the $4.27 billion posted in January 2019.
That month, exports rose 2% year on year to $6.41 billion, slower than the 6.4% growth in September. Meanwhile, imports surged 25.1% to $10.43 billion.
The market was also cautious ahead of the release of the November US consumer price index, a trader said in a Viber message.
A faster-than-expected inflation print could strengthen the case for the US Federal Reserve to tighten their monetary policy this December, Reuters reported. — L.W.T. Noble with Reuters