THE PESO fell to an over two-week low against the dollar on Wednesday after strong US data renewed inflation concerns and rate cut concerns in the world’s largest economy.

The local unit closed at P58.395 per dollar on Wednesday, weakening by 21 centavos from its P58.185 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s weakest close in over two weeks or since it finished at P58.45 a dollar on Dec. 23.

The peso opened Wednesday’s session slightly weaker at P58.20 against the dollar, which was already its intraday best. Its worst showing was at P58.40 versus the greenback.

Dollars exchanged went down to $1.74 billion on Wednesday from $1.87 billion on Tuesday.

The dollar was stronger on Wednesday after better-than-expected US job openings report that pointed to a strong economy, which could affect the path of future Federal Reserve rate cuts, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

”The peso tracked the dollar’s strength overnight amid hawkish shift in the Fed due to strong ISM (Institute for Supply Management) and Job Openings and Labor Turnover Survey (JOLTS) data,” a trader said in a phone interview.

The trader added that safe-haven demand for the dollar will likely persist amid jitters stemming from US President-elect Donald J. Trump’s proposed policies.

For Thursday, the trader sees the peso moving between P58.20 and P58.50 per dollar, while Mr. Ricafort expects it to range from P58.25 to P58.45.

The dollar stood tall on Wednesday and the yen sagged close to levels that drew intervention last year after strong US data drove a spike in yields and pared some bets on Federal Reserve rate cuts, Reuters reported.

Traders are jittery ahead of US labor data due on Friday and also inauguration day on Jan. 20, when Mr. Trump is expected to begin his second US presidency with a flurry of policy announcements and executive orders.

Tuesday data showed US job openings unexpectedly rose in November, layoffs were low, while services sector activity accelerated in December and a measure of prices paid for inputs hit a two-year high — a possible inflation warning.

Bond markets reacted by sending 10-year yields up more than 8 basis points (bps) to touch an eight-month high of 4.699%, while the 30-year yield rose 7.4 bps and is less than 9 bps from breaching 5%. — A.M.C. Sy with Reuters