Peso closes 40.85:$1 tracking PHL stocks
The Philippine unit ended Tuesday at 40.85:$1, strengthening by four centavos from Monday's 40.89:$1 close. Some $915.6 million were traded Tuesday, up from $840.9 million previously.
"The main driver for the stronger peso is the track in Philippine equities market," a trader said by phone.
On Tuesday, the stock exchange closed on its fifth consecutive high. Foreign investors pouring in dollars in Philippine markets such as the stock exchange increase the amount of the US unit locally and cause appreciation of the peso.
In a separate interview, a second trader said, "The dollar is generally weak overnight, causing the peso to open at a stronger 40.85."
However, gains were offset by buying from oil companies and importers when the peso hit 40.815 Tuesday morning, he added.
Traders expect the peso to move within the 40.75 to 40.95 per dollar band on Wednesday. — BM, GMA News