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Peso weakens on profit taking

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THE PESO weakened against the dollar on Monday, dragged by profit taking after it hit its support levels intraday.

The local currency closed Monday’s session at P52.22 versus the greenback, six centavos weaker than the P52.16 finish last Friday.

The peso opened yesterday’s session stronger at P52.15 against the greenback. It soared to as high as P52.075 intraday, while its worst showing stood at P52.23 per US currency.

Trading volume thinned to $633.31 million from the $846.86 million that changed hands the previous session.

Traders interviewed yesterday said the peso moved within range.

“Actually the dollar-peso is consolidating. We saw a lower open, but it closed near the high. It’s showing signs of consolidation,” a trader said in a phone interview.

Another trader said the peso consolidated the whole day as financial markets in the US were closed in observance of the Memorial Day. However, the trader added that the peso was stronger in the morning session as it tracked the lower dollar overnight following “weak” durable goods data in the US.

“Later in the afternoon, we saw heavy buying (of the dollar),” the second trader said. “We saw dollar-peso trending lower for the past few days. Maybe the banks’ perspective were all about shorting the dollar-peso. But as we saw that we’re already on the support levels, maybe they were trying to take profit or reverse their positions.”

Meanwhile, a third trader attributed the peso’s weakness to “heightened geopolitical risks from the US-China trade tensions and uncertainty over the European parliamentary elections over the weekend.”

For today, the first two traders expect the peso to move between P52.05 and P52.35, while the other gave a P52.15-P52.35 range. — K.A.N. Vidal

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