Peso slips ahead of data

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THE PESO slipped against the dollar on Tuesday as market participants await local trade data to be released today and amid risk-off sentiment in the stock market.

The local currency closed Tuesday’s session at P52.47 against the greenback, nine centavos weaker than the P52.38-per-dollar finish last Monday.

The peso opened the session weaker at P52.39 per dollar before sliding to its intraday low of P52.49. Its best showing stood at P52.38.

Trading volume thinned to $798.9 million from the $822.45 million that switched hands the previous day.

A foreign exchange trader said in a phone interview that the peso slid as investors were cautious ahead of trade data to be released on Wednesday.

“Investors are increasingly concerned with the widening of the current account and trade deficits last year,” the trader said in an e-mail.

Meanwhile, another trader said the peso “traded within range” given the risk-off sentiment in the local bourse.

The Philippine Stock Exchange index closed at 7,702.12 yesterday, down 1.09% from the previous session.

For today, the first trader expects the peso to trade between P52.35 and P52.55 versus the dollar, while the other gave a P52.40-P52.60 range. — Karl Angelo N. Vidal