THE PESO strengthened versus the greenback on Tuesday following some developments in the diplomatic talks between Russia and Ukraine.
The local unit closed at P52.415 per dollar on Tuesday, gaining six centavos from its P52.475 finish on Monday, based on Bankers Association of the Philippines data.
The peso opened Tuesday’s session at P52.495 against the dollar, which was also its weakest showing. Meanwhile, its intraday best was at P52.33 versus the greenback.
Dollars exchanged increased to $1.01 billion on Tuesday from $806.55 million on Monday.
“The peso appreciated due to risk-on sentiment amid reports of positive developments in Russia-Ukraine talks,” a trader said in an email.
Ukrainian President Volodymyr Zelenskiy said the negotiations with Russia went “pretty good”, Reuters reported. He said they have engaged with Israeli Prime Minister Naftali Bennett as part of a negotiation effort to end the war with Russia “with a fair peace.”
The discussions between Kyiv and Moscow are expected to continue this Tuesday.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message said the peso tracked the gains in the local stock market.
The Philippine Stock Exchange index rose by 202.97 points or 2.98% to end at 7,019.92 on Tuesday, while the wider all shares index likewise rose by 55.58 points or 1.53% to 3,694.07.
For Wednesday, Mr. Ricafort gave a forecast range of P52.30 to P52.50 per dollar, while the trader expects the local unit to move within P52.25 to P52.50. — L.W.T. Noble with Reuters