Peso corrects after 7 days of gains

(This is the Apr. 8 peso report; the market was closed Apr. 9 for a public holiday) The peso paused from a seven-day rally against the dollar yesterday, tracking regional currencies that weakened against the green-back on renewed risk aversion. The local currency ended 15 centavos weaker at P44.95 per dollar from Wednesday’s P44.80-per-dollar finish. It traded at a low of P45 to the dollar and managed to strengthen to P44.84 to the dollar during intraday trade. The losses came after Asian currencies shed gains following bigger-than-estimated fall in US consumer credit and renewed concerns that Greece would default on its debts, traders said. Still, traders noted the peso was due for correction after enjoying seven straight days of gains. “Technically, Asian currencies were squeezed because of technical correction," a trader said. The South Korean won led the decline among Asian currencies, ending local trade down by 0.2% at 1,123.3 per dollar from Wednesday’s close at P1,120.50. “The correction was expected. Technically, the peso was due for a correction," said Marcelo E. Ayes, senior vice-president at the Rizal Commercial Banking Corp. “The decline was a little tame. I was expecting the peso to hit P45.10 to P45.20," he pointed out. -- D. A. B. Nepomuceno, BusinessWorld