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THE peso
recovered its downtrend against the US dollar on Friday
in what currency traders said is a “correction” after a
week of depreciation.
The
local currency closed at P43.44 from Thursday’s close of
P43.45—a six-month low. It opened at P43.40, trading as
high as P43.36 and as low as P43.48. Trade volume
reached $495.50 from the previous day’s $606 million.
A
currency trader from a universal bank said the peso’s
recovery on the last trading day of the week is “a
cyclical occurrence, a technicality.”
“Inflationary woes still remain. There is still pressure
on investors so they are not keen on converting all of
their dollars to peso,” the trader said.
“Oil
prices retreated but there is no telling that it will
not rise again. If that happens, the peso will continue
its depreciation,” the trader added.
Another
trader from a commercial bank, who requested anonymity,
said investors this week would remain cautious and glued
to oil prices, which is the “main indicator” of the way
the peso-dollar trade will go. |
