THE PESO rallied due to profit-taking ahead of the weekend, closing higher even as the dollar gained strength on the back of positive signals on US tax reform initiatives.

The local currency closed at P51.45 versus the greenback on Friday, gaining eight centavos from its P51.53-per-dollar close on Thursday, which was a fresh 11-year low.

The peso strengthened at the open at P51.48 per dollar, but weakened to as low as P51.57 throughout the day. Its best showing intraday was at P51.44.

Dollars traded were valued at $519.1 million, slightly lower than the $565.7 million that changed hands the previous day.

Traders said the peso initially plummeted following news in the US that the Senate approved a budget blueprint, which kicks off US President Donald J. Trump’s plan to cut taxes.

“The market saw news that the US Senate passed the budget blueprint, and I think that’s positive for the US,” a trader said in a phone interview.

Another trader said the dollar’s intraday strengthening was also due to the better than expected US jobless claims.

Reuters reported that unemployment claims dropped to its lowest level in more than 44 and a half years last week.

However, both traders said that the market decided to sell dollars as the foreign exchange market neared the close.

“But then, in the afternoon, profit-taking ahead of the weekend,” said the trader. – E.J.C. Tubayan

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