THE PESO ended flat against the dollar on Thursday even as risk-off sentiment overnight pushed the local currency weaker in morning trade.
The peso ended the session at P54.18 versus the greenback on Thursday, unchanged from its previous close.
The peso opened the session weaker at P54.22 per US currency and fell to an intraday low of P54.28. Its best showing, on the other hand, was at P54.16 versus the greenback.
Dollars traded thinned to $665 million from the $720.8 million that exchanged hands on Wednesday.
A foreign exchange trader said the peso continued to consolidate even as it traded weaker in the morning session due to the risk-off sentiment among investors.
“It’s a confluence of factors. I would say fundamental, political and economic factors add up to the risk-off sentiment among market players,” the trader said in a phone interview.
The trader cited continued concerns over US-China trade tensions as well as rising US Treasury yields.
“The risk-off sentiment did not have that usual effect wherein you’d buy the dollar as a safe-haven move. It’s not the case now,” the trader said. “We’re just seeing the dollar-peso consolidating at the moment.”
Meanwhile, UnionBank of the Philippines chief economist Ruben Carlo O. Asuncion said there were no significant drivers for the peso during Thursday’s session.
“US stocks decline didn’t even influence the peso to depreciate as I have expected,” Mr. Asuncion said in a text message. “It may mean that fundamentals are really intact at this point.”
For Friday. Mr. Asuncion expects the peso to move between P54 and P54.20, while the trader gave a P54.10-P54.35 range. — KANV