Peso recovers as move to impeach Davide fizzles out

The peso recovered yesterday, gaining 19.50 centavos to close at 55.170 from Monday’s close of 55.365 to the dollar as the move to impeach Supreme Court Chief Justice Hilario Davide Jr. fizzled out, analysts said yesterday.

Earlier, President Arroyo urged the business community to continue its support for the administration.

"We must be able to see through the clouds of doubts to realize our great potentials and I ask the business community to stand beside the government and stay the course with us," Mrs. Arroyo said.

"We are at the threshold of national strength and renewal and we should not lose the opportunities that come with it," the President added.

At the Philippine Dealing System (PDS), the peso opened strong at 55.240 before hitting a high of 55.110 and a low of 55.265 to $1.

Trading at the PDS was brisk with total volume reaching $240.60 million, slightly higher than Monday’s volume of $203.50 million.

The President said the recent weakness of the peso against the dollar was just temporary as the market reacts to the spate of recent negative developments that hounded the political front.

"We must build confidence in our political and economic strength by demonstrating unswerving focus on basic issues and concerns such as law and order, poverty alleviation, macroeconomic stability and peace building," the President stressed. – Marichu Villanueva