THE PESO went up further against the dollar on Monday on the back of positive developments in the US-China trade talks.
The local unit closed at P51.105 against the greenback on Monday, stronger by 19 centavos from P51.295-per-dollar close on Friday.
The peso opened the session at P51.23 versus the dollar. Its weakest point for the day was at P51.24, while its intraday high was at P51.095 against the greenback.
Dollars traded on Monday climbed to $1.103 billion from $1.036 billion on Friday.
“The peso closed stronger, among the best in more than 2.5 months…amid improved global risk appetite recently amid improved global risk appetite recently amid positive developments on Brexit and US-China trade talks. Some net foreign buying recently amid gains in the local stock market also supported the peso,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a text message.
Another trader attributed the peso’s strength to positive developments in the trade war between the US and China.
“Asian currencies have mostly gained as they were optimist with [US President Donald] Trump saying he wants to achieve a trade deal at the APEC (Asia-Pacific Economic Cooperation),” a trader said in a phone call.
On Friday, Mr. Trump said he believes a trade pact will be signed by the US and China by the time the APEC meetings take place in Chile on Nov. 16 and 17.
Chinese Vice Premier Liu He will provide Beijing’s perspective on the progress of the talks in a speech on Saturday, according to a tweet from editor-in-chief of the Global Times, a tabloid published by the People’s Daily of China’s ruling Communist Party.
“I think it will get signed quite easily, hopefully by the summit in Chile, where President Xi and I will both be…We’re working with China very well,” Mr. Trump told reports at the White House.
For today, Mr. Ricafort sees the peso trading at a range of P50.90-51.20 against the dollar, while the trader sees it moving within P51.00-51.50. — LWTN with Reuters