Foreign exchange
• Previous week: The peso still moved largely within the lower band of the 44 territory in the previous week, albeit at a weaker note during the period. In particular, the local currency started the week moving sideways at 44.275 to a dollar, from 44.245 to a dollar at the end of the previous week. This slightly appreciated to 44.26 to a dollar on Tuesday, then depreciated back to 44.32 to a dollar on Wednesday. The peso saw the biggest slump on Thursday, just before the trading holiday due to the observance of Labor Day on Friday—which is a national holiday. The peso closed the week’s trading on Thursday at 44.52 to a dollar. This is the lowest value of the peso in about two weeks, or since April 15, when the peso hit 44.54 to a dollar. The average trading value of the peso during the shortened trading week is at 44.34 to a dollar, slightly weaker than 44.23 to a dollar in the previous week. The total traded volume is at $2.06 billion, lower than the $2.831 billion in the previous week.
• Week ahead: The local currency is seen to move around the same rate as the previous week’s, with an upward bias of up to about 44.6 to 44.8, several market players said. External-data releases are still seen to hound local markets during the period.
Inflation (April 2015)
May 5, Tuesday
• March 2015 inflation: The Philippine Statistics Authority (PSA) reported that inflation for March fell to 2.4 percent, squarely within the central bank governor’s official forecast range for the month, at 2.1 percent to 2.9 percent. March’s inflation is slower than the 2.5-percent inflation rate seen in the previous month, and the 3.9 percent seen in March 2014. The month’s figure also put inflation average for the first quarter of the year significantly lower than the first-quarter inflation average of 4.1 percent.
• April inflation: No significant surprise is expected from the April inflation print, and is likely to remain around the same rate as the previous month’s. Earlier, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. forecast April inflation to hit 1.9 percent to 2.8 percent. Also, private-sector economists see inflation hitting 2.4 percent again in April