Home Economy Peso may decline vs the dollar on expectations of weak GDP

Peso may decline vs the dollar on expectations of weak GDP

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THE PESO may depreciate versus the greenback this week amid expectations of slower economic growth in the third quarter. 

The local unit closed at P50.33 per dollar on Friday, gaining 26.5 centavos from its P50.595 finish on Thursday, based on data from the Bankers Association of the Philippines.

The peso also appreciated by 8.5 centavos from its finish of P50.415 per dollar a week earlier.

The local unit’s Friday close was its strongest since it ended at P50.27 on Sept. 22, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.

Positive market sentiment on the back of improved external trade also supported the peso on Friday, Mr. Ricafort said.

Data released by the Philippine Statistics Authority (PSA) showed the trade deficit widened by 14% to $4 billion in September from the $3.51-billion gap in August and by 67% compared with the $2.27-billion deficit a year earlier.

That…

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