THE PESO weakened on Wednesday, weighed by political risks arising from the US House of Representatives’ move to open a formal impeachment inquiry against US President Donald J. Trump, causing the market to seek refuge in the safe haven dollar.
The local unit ended at P52.211 against the greenback on Wednesday, depreciating by 6 centavos from its P52.15-to-a-dollar close on Tuesday.
The peso opened at P52.25 versus the dollar. It traded in a tight range, with its weakest point recorded at P52.295, while its intraday best was at P52.21 against the greenback.
Dollars traded on Wednesday slipped to $1.041 billion against the $1.225 billion seen on Tuesday.
One trader attributed the peso’s weakness to some developments overnight.
“The dollar strengthened on the back of political risks arising from a possible impeachment case against [US President Donald J.] Trump,” he said, noting that such development caused the market to opt for safe haven currencies.
Aside from the impeachment inquiry, the second trader mentioned “fluid” developments to have weakened the peso against the dollar.
“Headlines which were about the US-China trade negotiations and the Brexit also gave a risk-off tone,” he commented.
On Tuesday, US House Speaker Nancy Pelosi announced the House is opening a formal impeachment inquiry of Mr. Trump. She said Mr. Trump had sought Ukraine’s help to smear Democratic presidential frontrunner Joe Biden ahead of the 2020 election.
For today, the first trader sees the peso to trade between P52.10-P52.40, while the second trader sees it playing around the P52.10-P52.30 range. — L.W.T.Noble