The peso can be traded with the dollar this week as the market continues to focus on U.S. trade negotiations with China and other trading partners.
The Philippines' Bankers Association showed that local departments completed 11.1 Centavos at a price of P55.635 per dollar on Friday, from P55.746 on Thursday.
However, the week after week, the peso fell by 12.5 Centavos from the end of P55.51 on May 9.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber news that the Peso climbed on Friday against green climbs after April's U.S. producer price index (PPI) data.
A trader also said in a telephone interview that the dollar is weaker because of the PPI report, but supports the rise in PESO because of the PPI report.
This week, traders said the market will continue to monitor ongoing trading negotiations in the U.S. due to the lack of potential customers.
Traders have seen the peso move between P55.50 and P55.90 per dollar this week, while Mr Ricafort expects it to range from P55.40 to P55.90.
The dollar is linked to the yield of the U.S. Treasury after this week's drawbacks cemented the bet of a higher Fed's reduction rate this year.
The week began with the headlines of the U.S.-China trade truce, which made the dollar higher, although the delight of “Delight” quickly disappeared and traded currencies indirectly.
Much of the action in the forex market comes from the dollar-winning move against South Korea, which in the news has dropped sharply for the second consecutive day, so much so that Washington and Seoul discussed the dollar/winning market earlier this month.
These moves are reminiscent of similar incidents in Taiwan’s dollar earlier this month.
The dollar last time was 0.4% lower at 1,390 won.
In the broader market, the dollar struggles to regain its foothold after data after night slideshows, indicating that we saw an unexpected drop in producer prices in April.
The PPI figures are closely behind the tame consumer price readings earlier this week, cementing the Fed's bet to cut rates at least twice this year.
The euro rose 0.26% to $1.2130, while Sterling rose 0.14% to $1.3325.
On a basket of currencies, the dollar fell 0.2% to 100.57, with slight weekly gains despite gains of 1.3% due to Monday.
Now, after Thursday's data, the market is priced around December, 49 basis points from the previous year, and the cut value is about 57 by December.
Fed Chairman Jerome H. Powell said in a close-up speech Thursday that policymakers believe they need to rethink their current monetary policy approach around key elements of employment and inflation. – Aaron Michael C. and Reuters
