Peso bounces back to P47.72

MANILA, Philippines - The peso Wednesday strengthened against the dollar, snapping two consecutive days of losses after market players awash with dollars took in profits on the local currency’s low. The peso closed at P47.72 per dollar, thirteen centavos stronger than Tuesday’s P47.85 finish. A total of $886.23 million changed hands from $999.12 million the previous day. It opened at the day’s low of P47.95, reacting negatively to the Dow Jones’ 3.71% drop the previous night. The Dow closed at 7,552.6 points, which was close to its five-and-a-half-year low close. "Market players priced in the uncertainties in the global economy," said a bank treasury official, who requested not to be named. A currency trader said the dollar was strong Tuesday night but investors became risk averse. The peso reached a high of P47.68 in the afternoon before it settled at the day’s close due to lack of demand for dollars by large corporations. Investors, meanwhile, sold their dollar holdings to take in profits, the official said. The peso is expected to trade within a tight range of P47.60-P47.90 Thursday as it takes its cue from the performance of US equities. Any positive news in the US that would perk up investor appetite would aid in peso appreciation, the trader said. — G. S. dela Peña, BusinessWorld