THE PESO strengthened against the dollar to reach a two-month high as market players prepare for remittance coverage for the long weekend.
The peso ended the shortened trading week at P53.535 versus the greenback on Wednesday, slightly stronger than the P53.59 finish on Tuesday.
This was the peso’s best showing in nearly two months or since it ended at P53.46 on Sept. 3.
The peso traded stronger the whole day, opening the session at P53.55 a dollar. It climbed to as high as P53.50, while its intraday low stood at P53.58 versus the US currency.
Foreign exchange traders said the peso climbed even as it traded within a tight range.
“We saw agent banks bid around the P53.50 level, so it provided liquidity for the market ahead of the anticipated remittances for the long weekend,” the trader said in a phone interview.
“Market players were looking at the inflation figure to peak probably in the fourth quarter,” a second trader added.
The central bank earlier indicated that inflation has likely peaked in the third quarter of the year and is expected to begin moderating.
“Due to this, some players lightened up their long dollar positions,” the second trader noted.
The trader also suspected possible flows during Wednesday trading, which supported the peso.
“Probably, the flows were for the secondary offer of [San Miguel Corp.] That’s possible.” — K.A.N. Vidal

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