Peso back in 46:$1 area on profit-taking, China data

After posting multi-year lows in two consecutive sessions, the peso bounced back to within the 46:$1 level on Wednesday.

The local currency leaped 31 centavos to 46.95 from the previous close of 47.26, as investors took advantage of the dollar’s rise to pocket gains.

The peso recovered against the dollar due to profit taking, BDO Unibank chief market strategist Jonathan Ravelas said.

"It just followed the regional trend. We are still looking at the 46.90-to-47.15 range,” he added.

The peso breached the 47:$1 territory on Monday, after positive jobs data from the US sent the dollar to a seven-month high against its peers.

Stronger Chinese industrial production data also helped the peso escape the 47:$1 territory, MetisEtrade Inc. analyst Cherica Vicente said.

Data showed that industrial production in China expanded by 5.6 percent in October from a year earlier, in line with market expectations.

"Given that China is one of the country’s largest trading partner, the release generally had a positive effect on the peso,” Vicente said. – VS, GMA News