THE PESO weakened a tad against the dollar on Tuesday as the risk sentiment worsened following renewed concerns over US-China trade relations.
The local unit closed at P53.59 versus the greenback on Tuesday, slightly weaker than the P53.56-per-dollar finish the previous day.
The peso traded within a tight range yesterday, opening the session at P53.61 versus the dollar. It dropped to as low as P53.66, while its intraday high stood at P53.54 per US currency.
Dollars traded rose to $726.23 million from the $645.25 million that switched hands on Monday.
A foreign exchange trader said the peso consolidated the whole day as it traded within “two crucial levels.”
“The intraday high and low landed near the technical level of resistance at P53.65 and the level of support at P53.55,” the trader said in a phone interview.
“I think the peso slightly depreciated as the dollar is trading stronger. At the same time, most market players are preparing for possible inflow ahead of the long weekend.”
Michael L. Ricafort, economist at Rizal Commercial Banking Corp., said the renewed concern on US-China trade relations affected global risk appetite, with renewed declined in US stock markets partly weighing on the local stock market as well as on the peso.
“US could increase amount of Chinese imports covered by the trade war to at lease $500 billion from the current $250 billion,” Mr. Ricafort said in a text message.
For Wednesday, the traders expect the peso to trade between P53.50 and P53.70.
“[The peso will trade within] P53.30-P53.50 levels in view of long weekend when there may be conversion of some remittances for holiday spending,” Mr. Ricafort added. — Karl Angelo N. Vidal

RELATED ARTICLESMORE FROM AUTHOR