THE PESO gained against the dollar on Monday as market focus turned to US President-elect Donald J. Trump’s inauguration.
The local unit closed at P58.52 per dollar on Monday, strengthening by 12 centavos from its P58.64 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session stronger at P58.52 against the dollar, which was also its closing level. It climbed to as high as P58.45, while its worst intraday showing was at P58.60 versus the greenback.
Dollars exchanged went down to $1.23 billion on Monday from $1.6 billion on Friday.
The peso-dollar pair mostly moved sideways amid cautious trading ahead of Mr. Trump’s inauguration overnight, a trader said by phone.
The local unit rose as the dollar weakened before Mr. Trump’s inaugural speech, where he was expected to make policy pronouncements, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
On Tuesday, the peso’s performance against the dollar could depend on Mr. Trump’s speech, the trader said. The trader sees the peso moving between P58.40 and P58.70 per dollar, while Mr. Ricafort expects it to range from P58.40 to P58.60.
The US dollar dropped on Monday before Mr. Trump’s inauguration as US president later in the session, with investors focusing on policy announcements that could immediately affect the greenback, Reuters reported.
Trading volume was expected to be thin due to the US markets being closed for the Martin Luther King Jr. Day holiday.
Softer US inflation data and the prospect of multiple Federal Reserve rate cuts have recently boosted risk assets.
Investors’ attention was firmly fixed on the policies Mr. Trump will enact on his first day in office. At a rally on Sunday, Mr. Trump said he would impose severe limits on immigration.
The dollar index, which measures the US currency against six peers, was 0.32% lower at 109.08. It hit last week a 26-month high of 110.17.
It has risen 4% since the November presidential election as traders anticipate Mr. Trump’s policies will boost growth and inflation. — A.M.C. Sy with Reuters
