Peso stays at 5-yr low on strong US GDP


The peso stayed at a five-year low on the last trading day of the week as investors took note of the dollar strength on improving US economy and jobs data.

The Philippine currency dropped in value to close at P45.74 to $1, losing 12 centavos from P45.62 on Thursday.

Friday’s close was the lowest finish for the peso in five years since it settled at P45.90 on July 28, 2010.

“US GDP [gross domestic product]growth rose to 2.3 percent with an upward revision of the last quarter’s numbers from -0.2 percent to 0.6 percent. The US dollar gained against most counterparts,” Metrobank Research said.

The research arm of Metrobank also noted that US initial jobless claims came out better than expected at 267,000 against the 270,000 estimate.

At the end of its two-day meeting on Wednesday, the Federal Reserve in its policy statement cited gains in economic activity in general, with household spending gaining. It also noted that the US labor market continued to improve, with solid job gains and declining unemployment.

The Philippine peso, meanwhile, opened on the soft side at P45.65 to $1 on the Philippine Dealing System (PDS) on Friday before weakening further to P45.74 at the close.

Total volume transacted on the PDS fell to $610.4 million from $690.55 million in previous trading.


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