Peso rebounds on profit taking

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peso dollar bills

The peso bounced back against the dollar on Tuesday, May 22, due to profit-taking following the local currency’s closing in its near 12-year low.

The local currency closed at P52.195 versus the greenback Tuesday, up 27 centavos from the P52.465-per-dollar finish on Monday.

The peso traded stronger the whole day, opening the trading session at P52.33 per greenback. It slipped to a P52.38 intraday, while its intraday high stood at its P52.195-per-dollar close.

Dollars traded climbed to $750.65 million from the $705.25 million that switched hands during the previous session.

Traders interviewed on Tuesday said the peso strengthened against the dollar due to profit taking after it dipped to its near 12-year low on Monday.

“The local currency appreciated as profit-taking ensued after the peso dropped to record lows,” a foreign exchange trader said through e-mail.

On Monday, the local currency closed at its near 12-year low since it ended the session at P52.745-per-greenback finish on July 19, 2006. — Karl Angelo N. Vidal