Peso
Previous week: The local currency started last week’s trade on Tuesday, following the suspension of trading in the local financial markets due to Typhoon Ruby (international code name Hagupit). The peso traded on Tuesday at 44.53 to a dollar, broadly steady compared to the previous week’s end of 44.54. The peso then exhibited slight weakness coming into Wednesday to hit 44.66 to a dollar before appreciating back to 44.48 against the greenback on Thursday. The local currency ended the week at 44.58 to a dollar. The total traded volume was at $1.915 billion.
Week ahead: The local currency is likely to continue its rally against the US dollar toward the week, as market players search for fresh leads toward the end of the year. Among the data sets that can sway peso-dollar rates are the statement following the upcoming monetary-policy meeting of the United States and the Philippines’s latest balance of payment (BOP) numbers.
Balance of payments (November)
December 19, Friday
October’s BOP: The country’s BOP for October alone hit a surplus of $24 billion. The month’s surplus is larger than the $5-million BOP surplus seen in the same month last year. It is, however, smaller compared to the previous month’s surplus of $98 million. October’s surplus was not enough to push the country’s 10-month deficit to the surplus territory. Latest data from the central bank showed that the country still suffers a $3.408-billion deficit in the period of January to October this year.
November BOP: Earlier, the Bangko Sentral ng Pilipinas (BSP) announced that it has revised its BOP projections for the year, now expecting a deficit toward the end of the year. This indicated that, although the BSP is still seeing some monthly surpluses coming into the country’s BOP, no significant monthly inflow is seen that will boost the country’s BOP position above the deficit line. Remittances sent toward the end of the year to fund holiday-season spending is also seen to support the country’s current account—a component of the country’s BOP.