THE PESO declined due to safe-haven demand.

THE PESO weakened against the dollar on Monday due to safe-haven demand amid lingering geopolitical concerns in the European Union (EU).
The local unit ended Monday’s session at P53.79 versus the greenback, nine centavos weaker than the P53.70-per-dollar finish on Friday.
The peso opened the session slightly weaker at P53.74 per US currency, but strengthened to as high as P53.65. Meanwhile, its intraday low was at P53.805 against the greenback.
Dollars traded dropped to $863.40 million from the $905.02 million that switched hands on Friday.
“I think it’s more of technical bound since it traded around 40 cents lower from the above-P54 level,” a trader said in a phone interview. “I think P53.65 is a good level since the P53.55 is the next level of support.”
The trader added that the local unit traded stronger in the morning session as it was boosted by the weak dollar trading last Friday.
“However, it traded [weaker] due to corporate demand, mainly from oil and other large companies.”
Meanwhile, another trader said the local currency slightly weakened as investors flocked to safer currencies such as the dollar amid “lingering Italian geopolitical and Brexit trade uncertainties.”
Reuters reported that United Kingdom Prime Minister Theresa May is expected to tell the parliament that 95% of the British exit from the EU has been settled, maintaining opposition for a land border with Northern Ireland.
For Tuesday, the traders expect the peso to move between P53.70 and P53.90 versus the dollar
“The peso might strengthen in view of expectations of softer-than-expected US [third-quarter gross domestic product] report,” the second trader noted. — K.A.N. Vidal

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