Peso back at P52:$1 level

Business World - - Front Page - EJCT

THE PESO re­turned to the P52per-dol­lar level on Wed­nes­day, its best in three months, as the mar­ket di­gested the re­sults US mid-term elec­tions and po­si­tioned ahead of third-quar­ter eco­nomic growth data to be re­leased to­day. The lo­cal cur­rency closed at P52.95 against the green­back yes­ter­day, strength­en­ing from its P53.025 close on Tues­day. This was the peso’s best fin­ish since the P52.85-per­dol­lar recorded on Au­gust 6.

THE PESO re­turned to the P52per-dol­lar level on Wed­nes­day, its best in three months, as the mar­ket di­gested the re­sults US midterm elec­tions and po­si­tioned ahead of third-quar­ter eco­nomic growth data to be re­leased to­day.

The lo­cal cur­rency closed at P52.95 against the green­back yes­ter­day, strength­en­ing from its P53.025 close on Tues­day.

This was the peso’s best fin­ish since the P52.85-per-dol­lar recorded on Au­gust 6.

The peso strength­ened im­me­di­ately to open the ses­sion at P52.93, and climbed to as high as P52.89 ver­sus the green­back. Its worst show­ing for the day was at P53.11.

The vol­ume of dol­lars traded surged to $1.45 bil­lion yes­ter­day from $983.78 mil­lion the pre­vi­ous trad­ing day.

A trader said the mar­ket was volatile yes­ter­day amid the re­sults of the US mid-term elec­tions.

“It was a pretty volatile ses­sion, with moves pri­mar­ily driven by the US mid-term elec­tions. We saw a lot of move­ment in the dol­lar over­all,” a trader said in a phone in­ter­view yes­ter­day. “It was mildly dol­lar-neg­a­tive with the Democrats win­ning the House and the Repub­li­cans win­ning the Se­nate. We’re still see­ing the dol­lar hold, I would see it will con­tinue overnight.”

An­other trader mean­while at­trib­uted the stronger peso to profit tak­ing ahead of the lo­cal cen­tral bank’s pos­si­ble tight­en­ing at its pol­icy meet­ing next week.

“The lo­cal cur­rency might con­tinue to ap­pre­ci­ate due to ex­pec­ta­tions of likely op­ti­mistic Q3 GDP (gross do­mes­tic prod­uct) growth data. Ex­change rates are likely to move within P52.85 and P53.05 range,” the sec­ond trader added.

A Busi­nessWorld poll yielded a 6.3% me­dian fore­cast for third quar­ter GDP growth, slower than the seven per­cent climb posted in July-Septem­ber last year.—

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