Peso goes up as dollar holders sell for profit

AFP PHOTO/ROMEO GACAD

MANILA, Philippines—The peso inched up on Tuesday as some dollar holders sold their currencies for profit-taking following the local currency’s depreciation on Monday.

The peso closed at 41.735 against the US dollar, up by 4 centavos from the previous day’s finish of 41.775:$1.

Intraday high hit 41.70:$1, while intraday low settled at 41.79:$1. Volume of trade amounted to $832.202 million from $868.7 million previously.

Traders said the dollar holders, such as exporters, sold their dollars on Tuesday to earn from the increase in the dollar’s value vis-à-vis the peso on Monday.

The depreciation of the peso on Monday, which came with the fall of other key Asian currencies as well, was blamed on the disagreement between the top leaders of France and Germany as to the timing and coverage of the proposed oversight system for banks in the eurozone.

French President Francois Hollande wants an immediate implementation of the system and a wider coverage to include all banks in the eurozone, estimated at 6,000. German Chancellor Angela Merkel wants a thorough study of the proposed system to ensure quality before it is implemented, and wants the coverage to include only big banks.

The disagreement raised concerns over the effectivity of the proposal, traders said.