Peso gains on dollar weakness

The peso strengthened anew on Wednesday, June 6, as the dollar slipped due to the stronger euro and ahead of the US trade balance data.
The local currency ended Wednesday’s session at P52.385 against the dollar, 1.5 centavos stronger than the P52.40-per-dollar finish on Tuesday.
The peso opened the session stronger at P52.35 against the dollar. It traded to a P52.32 high, while its best showing was at P52.41 against the US currency.
Dollars traded rose to $859.1 million from the $646.7 million tallied the previous day.
Traders interviewed on Wednesday said the peso moved sideways, with one saying that the peso strengthened as the dollar moved lower.
“Overnight, we saw a stronger euro. There was a report that they are looking more into reducing their stimulus. That resulted to a stronger euro and a weaker dollar,” one trader explained.
The trader noted that there was a heavy buying at around the P52.30 level, saying that “there might be upcoming demands this week so the market is just preparing.”
Meanwhile, another trader said that the peso strengthened ahead of the “likely downbeat US trade balance data [on late Wednesday] in view of the recent US trade stance with its main trading counterparts.”
Earlier this month, Reuters reported that the United States will proceed with their planned tariff imposition on steel and aluminum by removing the two-month exemption of Canada, Mexico and the European Union, setting the stage for a possible trade war. — Karl Angelo N. Vidal