THE PESO rebounded yesterday following news that credit rater Moody’s Investors Service upgraded its outlook for Thailand and the release of weaker-than-expected US durable goods data.
The local currency gained 15.8 centavos to close at P43.102 per dollar from P43.260 per dollar last Wednesday.
It opened trading yesterday at P43.240 a dollar.
News that Moody’s raised its outlook for Thailand, a trader said, supported the peso’s performance yesterday.
Moody’s raised its outlook on Thailand’s local and foreign currency government bond rating to “stable” from “negative” due to the country’s robust economic recovery and stable government finances.
Another trader said the peso strengthened against the dollar with the release of US durable goods data showing the US economy is still weak.
“Dollar was weaker because data on durable goods was not good.
With the weak data, market expects the US Federal Reserve will be aggressive in quantitative easing 2,” the trader said.
Orders for durable goods excluding transportation fell 0.8% in September, after increasing 1.9% in the previous month. Economists had expected a 0.5% increase in orders.
The US Federal Reserve has said more easing is needed to support the slumping US economy. It plans to purchase Treasuries to boost liquidity in the financial system. However, pumping more dollars into the system will weaken the currency.
For today, the traders said the peso is expected to trade within the P43 to P43.40 per dollar range.
Dollars transacted yesterday amounted to $1.204 billion, higher than the other day’s $978.230 million. -- Louella D. Desiderio
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