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Peso falls, rangebound as Treasury yields boost dollar

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THE peso weakened against the dollar on Friday as rising Treasury yields boosted the US currency.

The peso closed at P52.33 Friday, six centavos weaker than its previous close of P52.27.

The peso’s low during the day was P52.36, while its high was P52.25.

Market volume was $690.8 million, up from $687.8 million the previous day.

Traders said the peso moved sideways in a narrow range.

“The peso traded within a range today. It just followed the overall dollar move,” one said over the phone Friday, adding that there was “no catalyst” to drive the currency.

Another trader said: “Actually, the peso consolidated within the day. There’s not much movement over the past two days.”

A third trader said the continued rise of US Treasury yields contributed to the strengthening of the dollar.

US 10-year Treasury yields hit seven-year highs with traders and investors undecided on whether the market is susceptible to more selling, Reuters reported.

Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, said the peso’s slight weakness “may have been in response to the BoP (balance of payments) data.”

According to the Bangko Sentral ng Pilipinas, the overall BoP position was a deficit of $270 million in April, a reversal from the $917 million surplus logged the previous month.

“However, this deficit, overall, is expected and should not be a cause of concern at this point,” Mr. Asuncion added in a text message. — Karl Angelo N. Vidal