The peso gained against the dollar on Thursday, driven by lower global oil prices that eased inflation concerns and clues about the US central bank's policy path. The currency climbed by 5.6 centavos to finish at P61.565 versus the greenback, based on Bankers Association of the Philippines data. The local unit opened Thursday's session slightly stronger and traded within a narrow range throughout the day.
The peso was supported by easing global crude oil prices and less hawkish signals from the US Federal Reserve chair. The decline in oil prices reduced pressure on the central bank and eased inflation concerns. As a result, the peso strengthened against the dollar, with the exchange rate reaching as low as P61.53 at its intraday best.
Dollars traded decreased to $1.266 billion on Thursday from $1.575 billion on Wednesday, indicating reduced demand for the greenback. Market players are awaiting the release of key US jobs data, which is expected to show employment growth slowed slightly in June. The upcoming data will likely influence the peso's movement against the dollar in the coming days.
Oil prices fell for a third consecutive day on Thursday, driven by easing concerns over supply disruptions. The decline in oil prices followed reports of progress in talks between Iran and the US over the Strait of Hormuz. Brent futures and US West Texas Intermediate crude both fell, reaching their lowest levels since February 27.
The Japanese yen rose sharply against the dollar on Thursday, driven by expectations of possible intervention from Japanese authorities. The yen rally helped knock the dollar down against its peers, ahead of key US jobs figures due later in the day. The dollar index, which measures the greenback against a basket of currencies, fell 0.4% to 100.98.
The upcoming US jobs data is expected to show US employers added 110,000 jobs in June, with the unemployment rate holding steady at 4.3%. The data will likely influence the US Federal Reserve's policy path and impact the dollar's movement against other currencies. Market players are closely watching the data, as it will provide insight into the US economy's performance and the potential for future interest rate hikes.
For Friday, the peso is expected to move between P61.45 and P61.75 against the dollar, driven by the upcoming US jobs data and other market factors. The exchange rate will likely remain volatile, influenced by global economic trends and central bank policies. Market players will be closely watching the data and adjusting their positions accordingly.
