Peso posts slight gain vs. dollar ahead of US Fed's next move

The peso ended Monday almost unchanged against the dollar, basically regaining intraday losses as fund managers unloaded dollars ahead of  US Federal Reserve Chairman Ben Bernanke’s testimony later this week.

 

A dollar fetched P41.185, just 10 centavos less than the P41.195 it traded on Friday. 

 

Trading was lighter on Monday with $631.2 million changing hands compared with Friday's $774.8-million trading volume. 

 

“Profit-taking on the strong dollar ahead of Bernanke's announcement later this week strengthened the peso,” a trader said, noting that the peso hit an intraday high of P41.31 against the us unit. 

 

Currency markets are seen to be all ears when Bernanke deilvers the Fed statement, as mixed economic data kept investors guessing about the Fed's next move. 

 

A second trader said fund managers cut their long dollar positions and took profits at around the P41.30:$1 level. 

 

“Very light volume today. The peso was initially weaker but weekend remittances plus profit-taking strengthened it,” the second trader added. 

 

Tracking the release of minutes of the Australian central bank's policy meeting, traders expect the peso to move within the P41.10 to P41.30 per dollar level on Tuesday. — VS, GMA News