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Peso is sharply ahead of the Fed



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PHOTO OF BW FILE

PESO shifted sideways against the dollar on Monday as the market waits for the US Federal Reserve meeting this week, as well as positive changes in US-China trade talks.

The local unit finished trading on Monday at P51.08 against the dollar, five centavos stronger since closing P51.135 against the dollar on Friday.

Peso opened the session at P51.15 against the dollar. His weakest point on the day was P51.18, and the best result in relation to greenback is the end of P51.08.

Dollars recorded on Monday fell to USD 665.3 million from USD 1.396 billion on Friday.

Currency traders attributed the peso movement to market expectations two days before the Fed meeting on October 29-30.

"Today it was quiet because the market decided to approach the expectation and reduction of Fed policy rates in the US by 25 basis points. Peso has shifted sideways due to corporate demand or corporate coverage, said the trader on the phone on Monday.

"Peso gained value due to market risk sentiment after both the US and China are reportedly" close to finalization "under a bilateral trade agreement. The local currency may strengthen in anticipation of a likely cut in US interest rates from the Federal Reserve this week, "another trader said in an email.

US President Donald Trump said he hopes to sign an agreement with Chinese President Xi Jinping next month at the Chilean summit.

At present, the first investor sees the peso at P51.00-P51.20, while the second investor sees the exchange rate within P50.95-51.15. – Luz Wendy T. Noble

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