The peso strengthened against the dollar on Monday, April 2, as inflows continue to support the local currency.
The local currency ended Monday’s session at P52.035 versus the greenback, 8.5 centavos stronger from Wednesday’s finish of P52.16.
The peso opened stronger at P52.13 against the US currency. Its intraday low stood at P52.18, while its best showing was at P52-per-dollar.
Dollars traded slid to $504 million from the $878.5 million logged last Wednesday.
A trader said that the continued inflows remain supportive to the peso.
“There is still a continuation of inflows supporting the peso. Our guess is that maybe it has something to do with the rights offer of Metrobank (Metropolitan Bank & Trust Co.),” the trader said in a phone interview, adding that they are seeing some banks selling peso aggressively.
Metrobank is conducting a P60-billion rights offering to raise 799.8 million shares priced at P75 apiece until April 4. The capital raising exercise will fund the bank’s loan growth as well as the acquisition of its credit card arm.
Meanwhile, the trader also noted that the tariff imposition of China on American products did not affect Monday’s trading, although this may create a risk-off situation.
“For today’s trading, I don’t think it has affected that, although we don’t discount the fact that we always would be wary of the fact that if and when [President Donald J.]Trump tweets or issue statements, or when China responded to the the tariffs of the US, then definitely that’s a risk-off situation and whenever we see risk-off situation, dollar is usually the safe haven.”
China has increased tariffs by up to 25% on 128 US products including frozen pork, fruits and wine in response to the the imposition of duties on imports of steel and aluminum. — Karl Angelo N. Vidal