THE PESO rebounded on Tuesday as the dollar weakened due to the strong euro and ahead of the US Federal Reserve’s policy meeting.
The local currency closed yesterday’s session at P52.43 against the greenback, up 14 centavos from the P52.57 finish last Monday.
The peso traded weaker the whole day, opening the session at P52.53 versus the dollar. It climbed to as high as P52.41, while its intraday trough stood at P52.565 per US currency.
Trading volume rose to $939.03 million from the $886.07 million that switched hands the previous day.
A foreign exchange trader attributed the peso’s rise to the dollar’s slight depreciation.
“Similar to [Monday], the peso just followed the broad dollar move wherein it weakened minimally by 0.8%,” the trader said in a phone interview.
The trader said the dollar weakened marginally as the euro strengthened due to positive data from France. Due to this, the euro rallied even as other currencies were trading flat.
“But for the peso, the moves are always pronounced. I think it’s because we don’t see any significant flows from the corporates at the moment,” the trader added.
Meanwhile, another trader said the peso strengthened on the back of expectations that the Fed will send dovish signals during their policy meeting on Jan. 29-30.
For today, the first trader expects the peso to trade between P52.30 and P52.60 versus the dollar, while the other gave a P52.20-P52.40 range. — K.A.N. Vidal