THE PESO gained some strength on Friday as investors took their profits from a stronger dollar earlier this week, although trading remained quiet due to lack of leads.
The local unit closed the week at P53.465 versus the greenback to mark a slight appreciation coming from the P53.48 finish on Thursday.
The peso opened the session weaker at P53.51 per dollar and even hit P53.52 as its intraday low. The currency touched P53.46 as its best showing during the session before settling at the closing rate.
Sought for comment, two traders pointed out that the market was generally muted on Friday due to lack of substantial market movers.
“The peso moved sideways, it was very quiet today. There’s not much going on,” one trader said on Friday, while noting the dollar picked up strength overnight.
“The dollar rally overnight was toned down that’s why we moved slightly lower.”
The trader pointed out that players are likely watching out for the upcoming speech of United States Federal Reserve chair Jerome H. Powell on Friday night.
The trader noted, however, that there is a “risk-off” tone among investors.
Players have long priced in another tightening move from the US Fed on September, and await cues from Mr. Powell towards this end.
Another currency trader added that the sideways move on Friday reflects a cautious stance taken by market players.
“The peso strengthened today as investors started to take profits from the recent strength of the dollar this week and avoided placing dollar positions ahead of the long weekend,” the second trader said on Friday.
Financial markets will be closed on Monday, Aug. 27 as the country observes National Heroes’ Day holiday.
Dollars traded on Friday amounted to $421.05 million, lower than the average volume and also down from the $576.45 million which exchanged hands the previous day. — Melissa Luz T. Lopez