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By Chino S. Leyco, Reporter
The local currency hit a fresh eight-year high
during midday trade Thursday before closing lower against the US
dollar compared to the previous day’s exchange rate, because of
the political noise.
After hitting a P40.25 mark, which was the
highest since February 2000, the peso closed at P40.48 to the
greenback, weaker relative to Wednesday’s finish of P40.33 to $1.
At the Philippine Dealing System the total
volume traded amounted to $373.5 million against the previous
trading day’s $1.015 billion, which was spurred on by a globally
weak US dollar and attractive peso yields.
“The peso experienced cautiousness [Thursday]
after hitting fresh high due to uncertainties on the scheduled
rally,” a trader said.
The trader likewise said it is hard to tell if
the peso will breach the P40 mark this week.
“If the rally will become relatively peaceful,
the peso might breach that level next week,” the trader added.
Nicholas Kwan, Standard Chartered Bank’s
Global Research regional head, meanwhile, predicted that the peso
will average P40 to a dollar in January to March this year, adding
this will help to ease inflationary pressures, like high oil prices.
“The Philippines is in a very good position,
because you have allowed the peso to appreciate so much, now it
takes less off inflationary pressure,” Kwan told reporters
including The Manila Times.
Metropolitan Bank and Trust Co. also said
traders will be gunning for P40 next week, but they expect Bangko
Sentral ng Pilipinas (BSP) intervention.
“BSP buying activity to temper the peso’s
rise. Remember that the peso is the laggard in the Southeast Asian
region owing to political uncertainty. Expect more peso appreciation
should there be finality to the on-going political controversy,”
Metrobank said.
Next week, the bank projected the peso to range
from P40 to P40.60 to $1.
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