Peso inches up as market awaits US data, elections

THE PESO inched up against the dollar on Wednesday, with the market staying cautious before the release of key US data and the US election.

The local unit closed at P58.23 per dollar on Wednesday, strengthening by 4.5 centavos from its P58.275 finish on Tuesday, Bankers Association of the Philippines data showed.

The peso opened Wednesday’s session stronger at P58.20 against the dollar. It climbed to as high as P58.18, while its worst showing was at P58.33 versus the greenback.

Dollars traded went up to $1.24 billion on Wednesday from $1.17 billion on Tuesday.

“The dollar-peso mostly traded sideways amid some market caution as players awaited the results of the US elections, as well as US gross domestic product and US ADP employment data,” the first trader said in a phone interview.

The peso was also supported by the seasonal increase in remittances ahead of the long weekend, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message. The market is closed on Friday for All Saints’ Day.

“The peso appreciated following the upbeat US job openings data, easing concerns of a weakening US labor market,” the second trader said in an e-mail.

For Thursday, the first trader sees the peso moving between P58.10 and P58.40 per dollar, while Mr. Ricafort expects it to range from P58.10 to P58.30.

The second trader said the peso could move from P58.10 to P58.35 per dollar. — A.M.C. Sy