Peso weakens vs dollar after US trade court blocks Trump’s tariffs
THE PESO fell against the dollar on Thursday after the US Court of International Trade blocked President Donald J. Trump’s sweeping reciprocal tariffs on trade partners.
It closed at P55.73 a dollar, weakening by 25.5 centavos from its P55.475 finish on Wednesday, according to Bankers Association of the Philippines data posted on its website.
The peso opened at P55.65, weakened to as much as P55.82 and appreciated to as much as P55.62 against the greenback. Dollars exchanged fell to $1.68 billion from $1.8 billion on Wednesday.
“The dollar-peso closed higher as the market reacted to the US court decision to block President Trump’s tariffs,” a trader said by telephone.
The dollar rose against its major peers after the court ruling, providing some relief for the currency that has struggled this year due to trade uncertainty.
The greenback gained a third of a percent against the yen and the Swiss franc but was off session highs after the trade court ruling that found Trump overstepped his authority by imposing across-the-board duties on imports from US trading partners.
The court ruling provided some relief for the greenback since hitting multi-year lows, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
“Trump’s global tariffs were deemed illegal and blocked by the US trade court, a major legal setback for a president who has been testing the limits of presidential power with his policies,” he said.
The Court of International Trade said the US Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president’s emergency powers to safeguard the US economy.
The trader expects the peso to trade from P55.50 to P55.90 a dollar on Friday, while Mr. Ricafort sees it at P55.60 to P55.85. — Aaron Michael C. Sy with Reuters
