Peso seen stable with weaker dollar

The peso could appreciate to a high of P51.80 and depreciate to not more than P52.20, according to an RCBC analyst.

The country’s local currency is seen to remain stable this week following its stronger showing last week.

Rizal Commercial Banking Corporation lead economist Michael Ricafort attributed this to the weakness of the US dollar against major global currencies.

“There is a good chance for the peso to remain relatively stronger this week and could possibly trade back below P52 levels amid weaker US dollar versus major global/Asian currencies amid renewed declines in US government bond yields,” Ricafort said in a text message.

“This came after weaker-than-expected US jobs data that may have been adversely affected by the lingering/worsening US-China trade war,” he added.

According to Ricafort, the local unit could appreciate as high as P51.80 and depreciate not more than P52.20 for the week.

In addition, the analyst noted on President Trump’s decision to suspend indefinitely the planned import tariffs from Mexico to help lift local markets and the peso.

At the Union Bank of the Philippines, chief economist Carlo Asuncion shared the same sentiment as he forecast the local unit behaving the same.

“Peso is expected to move sideways this week with the lack of solid leads,” Asuncion said in a text message with the movement within the P51.7 to P52.0 range.

Meanwhile, Ricafort said that the government’s treasury bill (t-bills) rates will continue to sustain its declining trend from the previous auctions.

“T-bill yields could still continue the declining/easing trend amid market expectations of another possible cut in local policy rate as early as the next rate-setting meeting on 20 June 2019,” said Ricafort.