THE PESO finished almost flat versus the dollar on Wednesday amid consolidation and profit taking, with investors on a wait-and-see mode ahead of key US labor data due on Friday.

The local unit ended at P50.39 against the greenback yesterday, two centavos lower from its P50.37-per-dollar close on Tuesday.

The local currency opened slightly weaker at P50.405 per dollar. Its intraday low was seen at P50.485 against the foreign currency, while its peak for the day was at P50.37-to-the-dollar.

Dollars traded on Wednesday went up to $576.04 million from the $432.4 million that exchanged hands on Tuesday.

One trader attributed the exchange rate to mere consolidation. “We saw good showing for the peso as it just consolidated but eventually the market sold the dollar,” the trader said by phone.

“The peso depreciated slightly today, as profit taking partly offset the impact of better-than-expected core PCE (personal consumption expenditures) inflation data,” the trader said by e-mail on Wednesday.

Reuters reported US PCE inflation, excluding food and energy, rose to 0.1% in June after a 0.2% gain in May.

Meanwhile, another trader said the peso dropped slightly due to profit taking on the back of upbeat PCE inflation data.

For today, both traders expect the peso to move between P50.30 and P50.50 versus the dollar.

“The peso might depreciate amid likely upbeat US ADP employment report,” one trader noted.

Most emerging Asian currencies eased on Wednesday, pressured by a fall in global oil prices, while the Indian rupee was little changed despite expectations that the country’s central bank will cut interest rates later in the day.

With inflation cooling sharply, a majority of economists surveyed by Reuters expect the Reserve Bank of India (RBI) to cut its repo rate by 25 basis points to 6% at the close of its meeting later in the day.

But the RBI has surprised markets several times in recent months.

The Malaysian ringgit weakened for a fourth session as oil prices skidded. Rising US fuel inventories pulled US crude back below $50 per barrel on Wednesday, adding to pressure from high supplies from producer club Organization of the Petroleum Exporting Countries.

Malaysia is one of the biggest oil and natural gas exporters in Asia.

The Indonesian rupiah slipped to its lowest in a week.

“It is more of a sentiment issue,” said Qi Gao, Asia Foreign Exchange Strategist at Scotiabank, referring to the effect of oil prices on Asian currencies.

Meanwhile, the yuan pulled back, ending a four-day winning streak.

Caution prevailed after reports that US President Donald J. Trump was close to a decision on how to respond to what he considers China’s unfair trade practices.

Among other currencies, the South Korean won and Singapore dollar drifted lower. — J.M.D. Soliman with Reuters

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