Peso softens on US economic data

The Philippine peso depreciated on Monday as dollar gained support from US economic data.

The local currency lost 19.5 centavos to close Monday at P51.870:$1 from P51.675 on Friday.

“It might have come from the US dollar’s strength. Although US data was not so favorable, the dollar has maintained its strength, and this might have been the cause of the peso’s weakness,” Union Bank of the Philippines chief economist Ruben Carlo Asuncion said.

The US economy added fewer-than-expected jobs while the unemployment rate dropped to a near 17-1/2-year low of 3.9 percent in April, a report by Reuters said.

“The dollar index has risen for three straight weeks, maintaining its strength after Friday’s mixed US data,” the report read. —VDS, GMA News