• Previous week: The local currency continued to trade within the 45 territory in the previous week, largely on the suasion of international events—such as the crisis and eventual default of the Greek economy, which rocked markets globally. The peso started the week at 45.19 to a dollar. The peso then appreciated back to 45.09 to a dollar on Tuesday, and reverted back to 45.11 against the greenback on Wednesday. The peso then hit 45.155 on Thursday, and ended the week with a strong note on Friday at 45.02. The total traded volume is at $2.34 billion, and the average trading value of the peso for the week is at 45.113 to a dollar.
• Week ahead: After the Greek drama, markets have now settled and, as such, traders in the Philppines’s foreign-exchange platform are looking to focus on the economic data within the country in next week’s trade. The most salient economic release for the week will be the June inflation rate.
Inflation (June)
Tuesday, July 7
• May inflation: The Philippine Statistics Authority announced last month that inflation hit a 20-year low at 1.6 percent. “The May inflation rate falls within our inflation forecast for the month, albeit at the low end of the target range of 1.6 percent to 2.4 percent. Inflation expectations continue to be well-anchored, and growth is still sound [solid],” Bangko Sentral Gov. Amando M. Tetancgo Jr. said earlier. “We nevertheless remain watchful of developments, particularly in oil-price movements, as these have knock-on effects on domestic pump prices, transport and other utilities and consumption, in general, as well as the impact of a possibly prolonged El Niño on the food-supply chain,” he added.
• June inflation: Tetangco said that inflation could hit as low as 1.1 percent in June, beating the record-low inflation rate in May at 1.6 percent. Tetangco’s forecast range for the month is within 1.1 percent to 2 percent for June 2015, as announced to reporters on Friday. “Lower diesel, kerosene, LPG [liquefied petroleum gas] prices and decline in Meralco [Manila Electric Co.] electricity rates provide downside inflation pressures for the month,” Tetangco said in a text message.