THE PESO gained versus the greenback on Monday following the downward correction in US Treasury yields.

The local unit finished trading at P48.58 per dollar on Monday, strengthening by four centavos from its previous close of P48.62, data from the Bankers Association of the Philippines showed.

The peso opened the session at P48.59 per dollar. It dropped to as low as P48.62 while its strongest showing was at P48.56 against the greenback.

Dollars traded increased to $634.8 million on Monday from the $588.6 million seen on Friday.

The peso climbed versus the dollar following a decline in yields of 10-year US notes, a trader said in an email.

US Treasury yields retreated on Friday as the market absorbed cash from the fiscal stimulus package, Reuters reported.

The 10-year note saw its yield at 1.7264% on Friday, down from the 1.754% on Thursday, which was the highest since January 2020.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso gained after the reimposition of restriction measures, as this could impact the country’s imports.

“Tighter restrictions for the next two weeks could slow down economic recovery and result in slower pickup in imports as well,” Mr. Ricafort said in a text message.

Metro Manila and surrounding provinces Bulacan, Cavite, Laguna and Rizal were placed under stricter restriction measures for two weeks starting Monday. Non-essential travel beyond the bubble is prohibited during the period.

New infections hit a new daily record of 8,019 on Monday, bringing the total to 671,792, based on data from the Department of Health. 

For today, the trader gave a forecast range of P48.50 to P48.70 per dollar, while Mr. Ricafort expects the local unit to move within the P48.53 to P48.63 band. — LWTN

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