Peso strengthens versus dollar on profit taking, tracks stock index’s advance

THE PESO appreciated versus the greenback on Wednesday on profit taking and tracking gains at the local stock market.

The local unit closed at P52.23 a dollar on Wednesday, strengthening by nine centavos from its P52.32 close on Tuesday, data from the Bankers Association of the Philippines showed.

The peso opened Wednesday’s session at P52.28 per dollar. Its worst showing was at P52.31, while its intraday best was at P52.15 versus the greenback.

Dollars exchanged declined to $1.135 billion on Wednesday from $1.334 billion on Tuesday.

The peso climbed due to profit taking after consecutive days of decline, a trader said in an e-mail.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message said the peso strengthened amid gains at the local stock market.

The main index rebounded slightly on Wednesday on bargain hunting even after the United States said it would ban oil imports from Russia.

The benchmark Philippine Stock Exchange index climbed by 12.15 points or 0.17% to close at 6,989.88 on Wednesday, while the broader all shares index dropped by 7.17 points or 0.19% to close at 3,732.35.

A US ban on imports of Russia’s oil ratcheted up punishment for the invasion of Ukraine on Tuesday, Reuters reported.

Washington imposed an immediate ban on imports of Russian energy, sparking a further increase in the oil price, which rose around 4% on Tuesday. Prices have surged more than 30% since Russia’s incursion began on Feb. 24.

Global benchmark Brent was last trading at $130.38 per barrel, up 1.88% on the day but still off a peak of $139.13 touched on Monday.

US West Texas Intermediate crude was up 1.52% at $125.58 per barrel.

For Thursday, Mr. Ricafort gave a forecast range of P52.05 to P52.35 per dollar while the trader expects the local unit to move within P52.10 to P52.40. — LWTN with Reuters