Peso up as US finalizes more trade deals
THE PESO extended its climb against the dollar on Thursday amid easing market uncertainty as the United States finalized trade deals with more countries, including the Philippines.
The local unit surged to P56.65 per dollar, up by 23.1 centavos from its P56.881 finish on Wednesday, Bankers Association of the Philippines data showed. This was the peso’s best close in nearly two weeks or since it finished at P56.63 on July 14.
The peso opened Thursday’s trading session stronger at P56.68 against the dollar. Its intraday best was at P56.60, while its weakest showing was at P56.73 against the greenback.
Dollars exchanged went down to $1.37 billion on Thursday from $1.51 billion on Wednesday.
“The peso appreciated from growing market optimism as the US continues to secure trade agreements with its key trading partners ahead of the August 1 deadline set by President Donald J. Trump,” a trader said in a Viber message.
The local unit continued to get support from the deal secured by the Philippines after President Ferdinand R. Marcos, Jr.’s three-day state visit to Washington this week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
On Tuesday, Mr. Trump announced that the US will impose a 19% “reciprocal” tariff rate on Philippine exports to the world’s largest economy. This is below the threatened 20% but still higher than the 17% announced in April.
European Union diplomats said on Wednesday that the US was nearing a trade deal with Brussels, resulting in a broad 15% tariff on the bloc’s exports to the US, a day after agreeing deals with Japan and smaller trading partners, Reuters reported.
For Friday, the trader sees the peso moving between P56.50 and P56.75 per dollar, while Mr. Ricafort expects it to range from P56.55 to P56.80. — AMCS with Reuters
