Peso May Rebound as Weak US Jobs Data Weighs on Dollar

The peso may rebound against the dollar this week after a weak US payrolls report. The currency declined by 8.5 centavos to close at P60.90 versus the greenback on Friday, but still climbed by 34 centavos from P61.24 on July 31.

The peso weakened on Friday due to renewed uncertainty over a peace deal between the US and Iran, as well as weak Philippine GDP growth data. The economy grew by 2.3% in the second quarter, slowing from 5.4% in the same quarter last year and 2.8% in the first quarter.

The increase in global crude oil prices on Friday also weighed on the peso, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.