THE PESO slumped against the dollar on Monday as markets await clarity on the policy direction of US President-elect Donald J. Trump.

The local unit closed at P58.595 per dollar on Monday, weakening by 33.5 centavos from its P58.26 finish on Friday, Bankers Association of the Philippines data showed.

The peso opened Monday’s session weaker at P58.45 against the dollar, which was already its intraday best. Its worst showing was at P58.64 versus the greenback.

Dollars exchanged went down to $1.31 billion on Monday from $1.405 billion on Friday.

The dollar was generally stronger on Monday as the market continued to digest Mr. Trump’s election win, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The [dollar-peso] pair ended higher due to dollar strength over the weekend on the Trump win, which is good for the US economy, and cautious trading ahead of the release of US inflation data this week,” the first trader said by phone.

“The peso depreciated from global economic growth concerns after the latest five-year stimulus package for local governments announced by the Chinese government failed to spur market optimism,” the second trader said in an e-mail.

For Tuesday, the second trader said the peso could continue to weaken due to a potential uptick in US consumer inflation for October.

The first trader sees the peso moving between P58.40 and P58.70 per dollar on Tuesday, while the second trader expects it to range from P58.50 to P58.75. Mr. Ricafort sees the peso ranging from P58.50 to P58.70.

The dollar edged higher on Monday as markets braced for US inflation data and a throng of Federal Reserve speakers this week, while the yuan nursed a hangover from Beijing’s latest underwhelming stimulus package, Reuters reported.

The US dollar stood at 7.1955 yuan, having jumped 0.7% on Friday, and looks set to again test the 7.2000 barrier.

The dollar did regain 0.5% on the yen to 153.43, having been dragged off last week’s top of 154.70 by the risk of Japanese intervention.

The dollar index was a fraction firmer at 105.05, after gaining 0.6% last week mainly against the euro.

The single currency was stuck at $1.0715, having shed 1% last week to as low as $1.0683. Support now lies around $1.0667 and $1.0601.

The euro has been pressured by Mr. Trump’s proposals for tariffs on imports, which could hurt European exports and risk a global trade war. Analysts also assume Mr. Trump’s policies would put upward pressure on US inflation and bond yields, while limiting the Federal Reserve’s scope to ease policy.

A host of Fed officials are due to speak this week, including Chair Jerome H. Powell on Thursday, so there will be plenty of guidance on the outlook for rates.

Data will also be influential as US consumer prices are due on Thursday and a core reading above the 0.3% forecasted would further reduce the chance of a December easing.

All this was seen as bullish for the dollar over the long term, though it was yet to be seen what Mr. Trump’s policies would actually be in practice. — Aaron Michael C. Sy with Reuters

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