peso bills
THE PESO bounced back slightly on positive remittances data. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PESO recovered slightly against the dollar on Tuesday on the back of stronger-than-expected remittances data and amid corporate demand.
The local currency ended Tuesday’s session at P54.07 versus the greenback, four centavos stronger than the P54.11 finish last Monday.
The peso opened the session weaker at P54.15 versus the dollar. It climbed to as high as P54.06, while its worst showing for the day stood at P54.17 per US currency.
Dollars traded declined to $766.45 million from the $807.2 million that switched hands the previous day.
A foreign exchange trader said the peso-dollar pair continued its volatile trading yesterday.
“It was quite volatile due to corporate demand. On the opposite side, we saw some reversal in the offshore market wherein they’re quite on the selling side,” the trader said in a phone interview.
The trader added that the July remittances data released last Monday “was also a driver for the strengthening of the peso.”
Money sent home by Filipinos abroad reached $2.401 billion in July, higher by 5.2% from the $2.283 billion received a year ago.
Despite this, ING Bank N.V. Manila branch senior economist Jose Mario I. Cuyegkeng said monthly remittances remain inadequate to finance the monthly trade deficit, which drives the peso lower.
“This shortfall will continue and should keep the peso on a defensive bias,” Mr. Cuyegkeng said in a report.
The country’s balance of trade in goods widened to a $3.55 billion deficit in July as imports accelerated while exports grew relatively flat.
Meanwhile, another trader said the peso appreciated “following the hawkish remarks from the Bangko Sentral ng Pilipinas (BSP) ahead of the Monetary Board (MB) meeting next week, which has eased some pressures on the local currency.”
The central bank on Monday reiterated signals of “strong” monetary response to surging inflation when the MB meets on Sept. 27.
BSP Governor Nestor A. Espenilla, Jr. had committed to “take strong immediate action” in response to the faster-than-expected 6.4% August inflation print.
For Wednesday, the first trader said the peso will likely trade between P54.05 and P54.20, while the other gave a P53.95-P54.15 range.
Meanwhile, most emerging Asian currencies fell early on Tuesday on news the United States was imposing more tariffs on imports from China, but some recovered as Beijing did not quickly announce retaliatory moves.
US President Donald Trump said on Monday that he will impose 10% US tariffs on about $200 billion worth of Chinese imports and warned he would pursue more tariffs if China retaliates.
As of 0600 GMT Tuesday, the Chinese government had not issued a statement on the US move.
But on Tuesday morning, China released comments by Commerce Minister Zhong Shan on Monday to foreign investors that “there was no winner in a trade war and that cooperation was the only correct choice”. The comments provided some lift to China’s yuan and other regional currencies.
The yuan, which fell as much as 0.35% early on Tuesday, trimmed its losses to just 0.1%.
The Thai baht, Singapore dollar and the South Korean won gained on the day, taking cues from the rebound in the yuan.
Thailand, Singapore and South Korea form a major part of China’s supply chain and their currencies are the most affected if trade tensions escalate between the United States and China.
The Indonesian rupiah led the regional decliners on the day, shedding more than 0.3%. — K.A.N. Vidal with Reuters