THE peso strengthened against the dollar on Friday, as investors sought to park their funds in riskier currencies pending the outcome of the United States-China trade negotiations.
The peso ended the week at P52.50 against the dollar, against P52.75 on Thursday.
The peso traded stronger the whole day, opening the session at P52.70. The low for the day was P52.74, and the high was P52.46.
Trading volume declined to $901.77 million from the $929.72 million that changed hands the previous session.
“The peso appreciated today due to risk-on sentiment following the resumption of trade talks between the United States and China,” a trader said in an e-mail.
Reuters reported that US Trade Representatives Robert Lighthizer and Treasury Secretary Steven Mnuchin were in Beijing for a meeting with Chinese officials.
“We had a very productive working dinner last night, and we are looking forward to meeting today,” Mr. Mnuchin said.
The negotiations are expected to continue next week in Washington.
“Yes, the US-China trade talks contributed to the risk-on sentiment of the market,” another trader said in a phone interview.
He added that investors saw an opening to put their money after adopting a risk-off stance in the past few days.
“Exchanges are all green and that signals that there is already risk-on sentiment in the market, thus a weaker dollar.” — Karl Angelo N. Vidal