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Peso weakens slightly

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THE PESO declined a tad on Monday as the dollar recovered from heavy selling over the weekend following the reopening of the US government after a one-month shutdown.

The local unit ended Monday’s session at P52.57 versus the greenback, 3.5 centavos weaker than the P52.535 finish last week.

The peso opened the session slightly higher at P52.51 per dollar, climbing to as high as P52.38 intraday. It slid to as low as P52.58 against the US currency.

Dollars traded thinned to $886.07 million from the $1.015 billion that switched hands the previous session.

Traders interviewed yesterday said the peso started strong in the morning session before swinging to close near its intraday low.

“The peso is just tracking the dollar move as the dollar recovered in the afternoon session from the aggressive selling seen over the weekend,” a trader said in a phone interview.




Another trader said the peso weakened as the greenback appreciated on the back of the “passage of a stopgap bill to partially end the US government shutdown.”

On Friday, President Donald J. Trump agreed to end a 35-day partial government shutdown without securing the $5.7 billion to fund the southern border wall.

The first trader added that the market is cautious as participants await economic developments overseas, which include the US Federal Reserve’s policy meeting.

“For the week, [the peso] will likely track the region given market expectation that the Fed would retain its dovish bias going forward,” Nicholas Antonio T. Mapa, senior economist at ING Bank NV-Manila, said in a report.

For today, the first trader expects the peso to trade between P52.45 and P52.65 versus the dollar, while the other gave a P52.40-P52.70 range. — K.A.N. Vidal