Foreign exchange
• PREVIOUS week: The local currency continued to rally in the lower band of the 44 territory during the week. At the week’s opening, the peso hit 44.27 to a dollar, moving sideways from the previous week’s close of 44.24 to a dollar. The peso’s value continued to slide on Tuesday at 44.335 to a dollar, and then appreciated in two consecutive days on Wednesday and Thursday to hit 44.12 to a dollar and 44.075 to a dollar, respectively. The peso ended the week with a correction at 44.09 to a dollar on Friday. The total traded volume was at $3.33 billion in the entire week.
• WEEK ahead: The local currency is still expected to stay within the 44 territory in the week ahead, but with a bias toward the appreciation of the peso, according to traders. This, as markets continue to factor in recent statements of the Federal Reserve of its “patience” in raising its own rates.
Inflation (February)
• January inflation: The Philippine Statistics Authority (PSA) announced a month ago that inflation will hit 2.4 percent in January this year, decelerating further from the 2.7-percent inflation seen at the end of 2014. This is the fifth consecutive month that inflation has been going down since September last year, after inflation hit a peak of 4.9 percent. With the tamed inflation outlook, several economists are in consensus that the central bank will likely keep the current level of rates in several policy meetings in the first part of the year.
• February inflation: Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. earlier said in a text message to reporters that February inflation could settle within 2.2 percent to 3 percent. “Higher cost of power and water, as well as the recent recovery in oil prices, imply some upward inflation pressures. However, these could be partly offset by lower rice prices,” Tetangco explained.