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THE WEIGHT rose bit by bit against the dollar on Wednesday after U.S. President-elect Joseph R. Biden, Jr. began his formal transition to the White House and in the middle of the race to develop a vaccine against the coronavirus disease 2019 (COVID-19).
The local unit closed at P48.13 against the dollar on Wednesday, increasing by 1.5 cents from its bottom of P48.145 on Tuesday, data from the Philippine Bankers Association showed.
The peso opened Wednesday’s session stronger at P48.11 per dollar and rose to P48.09. Meanwhile, it sank to P48.15 against the dollar.
Trading dollars fell to $ 565.27 million on Wednesday from $ 747.75 million the day before.
Rizal Commercial Banking Corp. chief economist Michael L. Ricafort said the peso rose as global economic sentiment improved after Biden’s victory over incumbent US President Donald J. Trump.
“The peso was stronger after the start of the formal transition process for US President-elect Joe Biden, along with continued market optimism about several recent vaccine developments,” Ricafort said in a text message.
Meanwhile, a trader said markets see a better economic outlook under the Biden administration.
The formal beginning of Biden’s transition to the White House and growing confidence that a COVID-19 vaccine would be ready soon ushered in a renewed appetite for global stocks, Reuters reported.
After weeks of waiting, the Trump administration on Monday cleared the way for Biden to prepare for the start of his administration, giving him access to briefings and funding.
Investors also bet that upcoming virus vaccines could ease the pain of several industries that have been hit hardest by the pandemic, from tourism to energy.
In the forex market, risk-sensitive currencies had an advantage over safe havens, including the US dollar.
For today, Ricafort expects the peso to move from P48.08 to P48.18 against the dollar, while the trader expects a range from P48.10 to P48.17. – with Reuters
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