Peso seen range-bound as traders await cues from Federal Reserve

THE PESO could trade sideways against the dollar this week as players await signals on the US Federal Reserve's easing path.

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On Friday, it closed at P58.855 adollar, risingby 21 centavos from its P59.065 finish on Thursday, according to Bankers Association of the Philippines data posted on its website. Week on week, the peso also gained 21 centavos.

“The dollar-peso closed lower after mixed US employment data gave no clear direction on the Fed’s path, which weighed on the dollar,” a trader said by telephone.

The peso also drew support from softer global crude oil prices, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

Both Mr, Ricafort and the trader expect the peso to move between P58.60 and P59.10 a dollar this week.

The dollar weakened against the yen on Friday after Japanese officials stepped up verbal intervention to stem the currency’s decline, even as the greenback was broadly headed for its biggest weekly rise in six weeks.

Against other major currencies, the US unit was well-bid, with the dollar index hitting its highest since late May.

The yen popped higher after Japanese Finance Minister Satsuki Katayama said intervention was a possibility to deal with excessively volatile and speculative moves, leaving traders on alert for signs of yen buying from Tokyo.