Peso hits 2-month high as PSEi dips

The Philippine Stock Exchange index (PSEi) declined as investors favored US assets, while the peso hit a two-month high against the US dollar, reaching the 47-level. The PSEi dropped 0.38 percent, or 24.07 points, to 6,258.71 points, with All Shares also falling slightly to 3,877.43 points. The Mining and Oil, Services, and Industrial sectors gained, while Property, Holding Firms, and Financials sectors declined during the trading day. The peso closed at 47.855, its strongest level since February 15, driven by improved employment data and a decrease in new Covid-19 cases. Economist Michael Ricafort highlighted that the peso's strength was also influenced by the decline in the unemployment rate to 7.1 percent and a compromise agreement on pork import tariffs. The ADP report showed that 742,000 new jobs were created in the US last April, higher than the 517,000 in March but lower than the expectations of 830,000. The peso improved further against the greenback after ending the day at 47.855 from 47.98 a day ago.