Peso edges lower vs dollar
THE PESO traded sideways versus the dollar yesterday as markets took a waitand-see stance on the path of Treasury yields in the United States as well as geopolitical tensions.
The local unit closed at P52.285 against the greenback, barely changed from its P52.29 finish on Tuesday.
The peso opened weaker at P52.37-perdollar and touched P52.40 as its intraday peak. The currency rebounded to P52.22 as its strongest showing during Wednesday’s session before settling at the closing rate.
Traders interviewed yesterday said the sideways move reflected investor caution amid emerging developments in the global financial markets.
One trader said the fresh pickup in yields on US Treasuries provided a lift to the dollar the other day, while expectations that this trend will persist kept the peso down.
“We are consolidating... The fundamentals continue to point to a weaker peso,” the trader said in a phone interview, noting that the peso remains “pressured” amid higher inflation, rising oil prices, and a current account deficit.
The dollar hovered on a five-month high against most Asian currencies yesterday as the benchmark ten-year US Treasury yields surged above three percent, Reuters said in a report.
Geopolitical concerns are also keeping investors jittery apart from rising US Treasury rates, another trader pointed out.
“The peso moved sideways [yesterday] amid mixed signals on geopolitical uncertainties concerning Iran and North Korea,” the second trader said via email. •