THE PESO slipped against the dollar once more on Friday due to upbeat US economic data amid looming trade tensions abroad.
The local unit ended the trading session at P52.55 against the dollar, slightly lower from its P52.52-per-greenback finish on Thursday.
As session opened, the peso immediately slipped to P52.56 versus the US currency. It dived to a low of P52.635, while its best showing stood at its P52.55 close.
Dollars traded thinned to $587.5 million from Thursday’s $886.88 million.
A trader said the peso weakened due to the “firm” US personal consumption expenditure data released Thursday night.
“The peso generally weakened today (Friday) following the release of Personal Consumption Expenditure (PCE) inflation data, which… kept firm last night, giving strength to the dollar,” the trader said in an e-mail.
In a Reuters report, the PCE price index, excluding volatile food and energy components, rose 0.2% for the third straight month in April, leaving the year-on-year “core” PCE price index at 1.8%.
The trader said the PCE is the “US Federal Reserve’s preferred inflation target.”
The data came alongside the growth in consumer spending, which jumped 0.6% last month, its biggest leap in five months.
Meanwhile, another trader said the trade issue in North America gave “a bit of movement” for the dollar.
“Yes, I think there’s a bit of movement for the dollar. But for the dollar-peso, not much reaction,” the trader said in a phone interview Friday.
The US said it will proceed with their planned tariff imposition on steel and aluminum by removing the two-month exemption of Canada, Mexico and the European Union, setting the stage for a possible trade war, Reuters reported.
The imposition of a 25% tariff on steel imports as well as the 10% duty on aluminum imports took effect Friday midnight, the Commerce Department said in a telephone briefing.
“As geopolitical uncertainties relating to the effectivity of US tariffs on imports from Canada, Mexico and the European Union might escalate over the weekend, there was profit-taking trend in the market in the intraday trade,” the second trader noted. — Karl Angelo N. Vidal