Peso climbs on US-China deal progress
THE PESO strengthened on Wednesday as US President Donald J. Trump said Washington’s “phase one” trade deal with China is inching closer to completion.
The local unit finished trading at P50.80 against the greenback on Wednesday, appreciating by 10 centavos from the P50.90 per dollar close on Tuesday, according to data from the Bankers Association of the Philippines.
The peso opened at P50.84 versus the dollar. Its weakest point for the day was at P50.92, while its best showing against the dollar was at P50.80.
Dollars traded thinned to $858.25 million from the $1.296 billion seen on Tuesday.
The local unit’s performance was boosted by developments in the trade negotiations between the world’s two biggest economies, according to Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.
“The peso exchange rate closed stronger versus the US dollar after the US and China signalled that they already reached consensus on some parts of the phase one deal. The talks for which is near completion, according to US President [Donald J.] Trump,” Mr. Ricafort said in a text message.
Meanwhile, a trader said Wednesday’s trading was relatively quiet in the absence of major headlines.
“The trading was sideways and medyo tahimik (quite silent) because not much has happened, no data movers. ’Yung (The) US-China trade deal pa rin ’yung nagde-determine kung saan siya pupunta (It’s still the US-China trade deal’s progress that is determining how trading will go),” the trader said in a phone call.
Reuters reported that Mr. Trump said the US and China are inching closer to a consensus for a first phase of their trade pact after key negotiators from both sides had a telephone discussion and agreed to continue discussion on issues that have yet to be finalized.
“We’re in the final throes of a very important deal, I guess you could say one of the most important deals in trade ever. It’s going very well but at the same time we want to see it go well in Hong Kong,” Mr. Trump told reporters at the White House, according to the report.
Meanwhile, China said it has called on US Ambassador Terry Brandstad to protest the passage of the Hong Kong Human Rights and Democracy Act in the US Congress, saying that the legislation is an interference to Chinese internal matter.
For today, both Mr. Ricafort and the trader expect the peso to move within P50.60-P50.90 against the dollar. — LWTN with Reuters
