Peso rises against dol­lar

Business World - - BANKING&FINANCE - KANV

THE PESO moved side­ways against the dol­lar on Thurs­day due to grow­ing con­cerns over the pas­sage of the tax re­form mea­sure in the US.

The lo­cal cur­rency closed at P51.27 against the green­back yes­ter­day, gain­ing three cen­tavos from its P51.30 fin­ish last Wed­nes­day.

The peso opened slightly stronger at P51.28 ver­sus the dol­lar. Its best show­ing for the day was at P51.22, while it sunk to as low as P51.33 against the green­back.

Dol­lars traded yes­ter­day to­talled $614.9 mil­lion, down from Wed­nes­day’s $721.85 mil­lion.

Traders at­trib­uted the side­ways move­ment of the lo­cal unit to ris­ing con­cerns on whether the US will be able to en­act its planned cor­po­rate tax cuts any­time soon.

“The mar­ket is still skep­ti­cal over the abil­ity of the US gov­ern­ment to pass the tax cut, that is why we saw a weak dol­lar overnight,” a trader said.

The trader added that the strong peso is no dif­fer­ent from the other Asian cur­ren­cies.

A US Se­nate tax-cut bill, dif­fer­ing from one in the House of Rep­re­sen­ta­tives, was ex­pected to be un­veiled on Thurs­day, com­pli­cat­ing a Repub­li­can tax over­haul push and in­creas­ing skepticism on Wall Street about the ef­fort.

Emerg­ing Asian cur­ren­cies will re­main sus­cep­ti­ble to the head­lines on the US tax bill, said Qi Gao, Asia FX Strate­gist at Sco­tia­bank in a re­port. The dol­lar stands to lose ground if the Se­nate tax bill de­lays plans to cut cor­po­rate taxes by one year, he said.

Mean­while, Land Bank of the Philip­pines (Land­bank) mar­ket an­a­lyst Guian An­gelo S. Du­mala­gan said this week’s trad­ing re­mained light due to “a scarcity of fresh leads abroad.”

Mr. Du­mala­gan added that the mar­ket re­mained cau­tious ahead of the mon­e­tary pol­icy meet­ing of the Bangko Sentral ng Pilip­inas (BSP) for most of the day.

After the mar­ket’s close, the BSP an­nounced that it is keep­ing pol­icy set­tings steady on the back of man­age­able in­fla­tion and firm do­mes­tic eco­nomic ac­tiv­ity.

Traders ex­pect the peso to move be­tween P51.08 and P51.40 against the dol­lar to­day.

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