Peso weakens with dollar near 3-month high

THE PESO weakened on Tuesday as the dollar stayed near its three-month high ahead of the US presidential vote next week.

The local unit closed at P58.275 per dollar on Tuesday, weakening by five centavos from its P58.225 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session stronger at P58.20 against the dollar. Its intraday best was at P58.13, while its worst showing was at P58.335 versus the greenback.

Dollars exchanged went down to $1.17 billion on Tuesday from $1.33 billion on Monday.

The peso was dragged down by a generally stronger dollar as markets awaited the US presidential elections on Nov. 5, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The dollar-peso traded within a tight range as players were cautious ahead of the release of US gross domestic product and jobs data this week,” a trader added in a phone interview

For Wednesday, the trader sees the peso moving between P58 and P58.50 per dollar, while Mr. Ricafort expects it to range from P58.15 to P58.35.

On Tuesday, the dollar drifted not far from a three-month high with one of the Federal Reserve’s preferred employment gauges — the Job Openings and Labor Turnover Survey or JOLTS job openings report — due on Tuesday, ahead of highly anticipated monthly nonfarm payrolls data on Friday, Reuters reported.

The dollar was little changed against a basket of six major peers, which includes the yen and euro. The dollar index stood at 104.29, after reaching 104.57 overnight, matching the high from Wednesday of last week, a level previously not seen since July 30.

Recent robust US economic data, including evidence of a resilient job market, have seen bets pared back for easing this year by the Federal Reserve, boosting the dollar.

The dollar slipped 0.23% to 152.92 yen, but that followed a rally to the highest since July 31 at 153.885 yen on Monday. — Aaron Michael C. Sy with Reuters