PHP Improves Vs USD

The Philippine peso ended Monday slightly better than its closed against the greenback Friday last week due partly to mix US economic data.

It finished the day at 46.73 from the previous trading’s 46.89 close, which a trader attributed to weaker US’ consumer confidence index this month.

The University of Michigan report said the consumer confidence index fell to 85.7 from 91.9 previously.

On the other hand, August 2015 producer prices, excluding food and energy, rose up 0.9 percent year-on-year from 0.6 percent previously.

“Positive outturn in the equities market also helped the peso,” the trader said.

The Philippine Stock Exchange index (PSEi) ended the day with 2.28 percent, or 157.8 points gain to 7,069.18 points on renewed investors’ confidence.

For the day, the local currency opened flat at 46.78 and traded between 46.81 and 46.73.

This brought the day’s averaged to 46.77.

Volume of trade reached USD 507.9 million, a tad lower than the USD 519.6 million at the end of last week.

BDO chief strategist Jonathan Ravelas expects the currency pair to trade range-bound this week or between 46.60 and 46.90.

He projects the resistance level of the local unit at between 47.00-47.50. (PNA) RMA/JSV/SSC