Peso slips as markets eye trade talks
THE PESO slipped against the dollar on Monday as markets await developments on countries’ negotiations the United States ahead of the Aug. 1 deadline for its planned “reciprocal” tariffs.
The local unit closed at P57.175 per dollar, dropping by three centavos from its P57.145 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session slightly stronger at P57.10 against the dollar. Its intraday best was at P57.06, while its worst showing was at P57.23 against the greenback.
Dollars exchanged went up to $1.36 billion on Monday from $1.31 billion on Friday.
The peso weakened slightly as the dollar continued to be supported by safe-haven demand as the Aug. 1 deadline for trade negotiations with the US draws closer, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Several countries, including the Philippines, are moving to negotiate the Trump administration’s planned reciprocal tariff rates, which are set to take effect starting next one.
“The peso depreciated anew from the uptick in US consumer sentiment report last Friday, underscoring the persistent strength of the US economy,” a trader added in an e-mail.
US consumer sentiment improved in July and inflation expectations declined, but households still saw substantial risk of price pressures increasing in the future, the University of Michigan’s Surveys of Consumers released on Friday showed, Reuters reported.
For Tuesday, the trader said the peso could depreciate further ahead of potentially hawkish remarks from US Federal Reserve Chair Jerome H. Powell at the Integrated Review of the Capital Framework for Large Banks Conference in Washington, DC.
The trader expects the peso to move between P57.05 and P57.30 on Tuesday, while Mr. Ricafort said it could range from P57.05 to P57.25. — A.M.C. Sy
