THE PESO approached the P51 level.
The local unit finished trading at P51.09 against the greenback on Tuesday, a centavo weaker from the P51.08-a-dollar close on Monday.
The peso opened the session at P51.08 versus the greenback. Its weakest point for the day was at P51.105, while its intraday was at P50.98 per dollar.
Dollars traded on Tuesday rose to $ 1,035 billion from $ 665.3 million on Monday.
A trader said the peso’s movement on Tuesday was affected by bargain-hunting.
“The peso is slightly weakened today with market participants bargain-hunting for the greenback near the P51 level. Trader the trader said in an email on Tuesday.
For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that the peso’s performance could be attributed to the narrower US trade deficit and the gains in the US stock market.
“Peso was slightly weaker after some US stock market index posted new record highs and the narrower US trade deficit data,” Mr. Ricafort said in a text message.
The US goods trade deficit fell in September as trade tensions restricted, but did not change the economic growth decelerated in the third quarter.
The report from the US Department of Commerce on Monday also showed inventories at retailers rising last month, but stocks at wholesalers dropping, leading to the Atlanta Federal Reserve to a 1.7% annualized rate.
The economy grew at a rate of 2.0% in the second quarter, slowing from the January-March quarter’s 3.1% pace.
For today, the trader expects the peso to range at P50.95-51.15 against the dollar, while Mr. Ricafort predicts the local unit will trade at the P50.90-51.20 band. – L.W.T. Noble with Reuters