THE peso was little changed on Friday, with sideways moves driven by profit-taking in the dollar and the European Central Bank (ECB)’s decision to prolong its bond-buying program.

The peso ended at P51.76, against the P51.75 finish on Thursday. It is also the weakest finish for the currency since Wednesday’s P51.77.

The peso opened weaker at P51.80 and traded as low as P51.85. The high for the session was P51.75 before weakening by one centavo at the close.

Traders attributed the exchange rate movements to a generally stronger dollar, which picked up after the ECB’s surprise announcement that it will extend its bond purchases until September 2018.

“The peso moved sideways after the ECB announced it is going to delay its tapering. The market was expecting it this year, so instead the dollar strengthened against the euro,” one trader said by phone.

Profit-taking helped offset the depreciation of the peso during the morning session, a second trader said, noting that market participants could be cashing in their gains ahead of an anticipated shake-up at the Federal Reserve.

“The peso was also down following news that Fed Chair Yellen might not be re-appointed for a second term by US President Trump. The peso’s decline was tempered by profit-taking towards the end of the day,” the trader said separately.

Mr. Trump will choose the next Fed chair by Nov. 3, who will sit for a four-year term. The incumbent, Janet L. Yellen, will close her term in February.

Dollar trading volume on Friday was $629.5 million, slightly lower than the $650 million which changed hands the previous day.

The first trader said the Bangko Sentral ng Pilipinas (BSP) conducted a “tactical intervention” during the morning session when the peso touched the P51.85 level, its lowest point in over a decade.

In a related development, BSP Governor Nestor A. Espenilla, Jr. said the bank will “definitely operate” its cash servicing and settlement units during the Nov. 13-15 holiday in Metro Manila, but noted that a decision has yet to be made as to whether the foreign exchange and bond markets will be open on those dates. – Melissa Luz T. Lopez

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