• Previous week: The local currency treaded near the 46 territory in the previous week, starting the trading week at 45.66 to a dollar. This was followed by a slight correction to hit 45.61 to a dollar on Tuesday. On Wednesday the peso hit 47.45 to a dollar, which further decelerated in value at 45.79 to a dollar on Thursday. This was the lowest value of the peso for the week. The peso then slightly recovered to 45.74 to a dollar at the close of the week’s trade on Friday. The total traded volume during the week was at $2.824 billion and posted an average of 45.709 to a dollar.
• Week ahead: Bank of the Philippine Islands told its clients that the peso is likely to stay within the range, as markets search for market moving developments.
August 11 Tuesday
June Production
Index Data
• May production index: The country’s manufacturing
output declined by 3.1 percent in May on the back of weak global demand and the prolonged dry spell, the Monthly Integrated Survey of Selected Industries (Missi), released by the Philippine Statistics Authority (PSA), showed. This is a reversal of the 12.7-percent growth in the same month last year. The five sectors that significantly contributed to the decline were footwear and wearing apparel, which contracted 19.2 percent; wood and wood products, 18.4 percent; basic metals, 16 percent; food manufacturing, 13.9 percent; and beverages, 10.2 percent.
• June production index: Economists see the manufacturing sector recovering in June this year due to the recovery of oil-related production during the month.
August 13 Thursday
BSP MB policy setting
• Previous MB meeting: In its previous meeting, the BSP decided to maintain its key policy rates at 4 percent for the overnight borrowing, or reverse repurchase facility, and 6 percent for the overnight lending, or repurchase facility. “The Monetary Board’s decision is based on its assessment that the inflation environment continues to be manageable.”
• Upcoming policy meeting: Economists still believe that the BSP will continue to hold policy rates on current conditions despite recent developments in the external and internal economy, particularly the slowing inflation outturn in the country.