Peso strengthens on dollar inflows

The peso strengthened on Monday as fund managers unloading their US currency holdings and inflows for an initial public offering (IPO) flooded the financial system with dollars.

The local currency gained 20.5 centavos to end trades at 42.055:$1 versus Friday's 42.26:$1 close.

Some $1.468 billion were changed hands Monday, above the $1.263 billion trading volume on Friday.

“Those who are in long dollar positions opted to cut their positions when the peso hit the lower 40s,” a trader said.

A second trader also noted that “there were talks of inflows for an IPO.”

Last week, fruit grower and canner Del Monte Pacific Ltd. bared plans to have its shares listed on the Philippine Stock Exchange (PSE) starting June 10.

Both traders agreed about the peso tracking gains made by the euro. According to Reuters, the euro gained some 0.2 percent against the dollar Monday.

Traders see the peso moving between the 41.90 to 42.15 per dollar range. — BM, GMA News