Peso surges to over 6-month high vs dollar

THE PESO surged to an over six-month high on Tuesday as fears of a global recession due to the Trump administration’s shifting trade policies continue to weigh on the US dollar.

The local unit closed at P56.77 per dollar on Tuesday, jumping by 31 centavos from its P57.08 finish on Monday, Bankers Association of the Philippines data showed.

This was the peso’s strongest finish in over six months or since it closed at P56.295 on Oct. 4, 2024.

The peso opened Tuesday’s session stronger at P57.03 against the dollar. It dropped to as low as P57.15 during the session, while its intraday best was its closing level of P56.77 versus the greenback.

Dollars traded surged to $2.13 billion on Monday from $1.48 billion on Tuesday.

“The dollar-peso closed higher, still on concerns over US President Donald J. Trump’s tariff policy, which continued to put pressure on investor sentiment against the greenback,” a trader said in a phone interview.

The peso was also supported by the increase in remittances ahead of the Holy Week break, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader expects the peso to move between P56.70 and P57.10 per dollar, while Mr. Ricafort said it could range from P56.70 to P56.90.

Philippine financial markets will be closed on April 17 (Thursday) and 18 (Friday) for non-working days in observance of Holy Week.

The dollar held steady on Tuesday, trading near a three-year low against the euro and a six-month trough against the yen, as investors trying to make sense of the constant changes to Mr. Trump’s tariffs remained wary of US assets, Reuters reported.

Much of the volatility that hit the dollar last week and sent Treasury yields soaring appeared to have abated somewhat on Tuesday, although investor sentiment was still fragile.

The euro, which has been one of the biggest beneficiaries of this month’s dumping of US assets, was a touch weaker on the day at $1.1336, narrowly below last week’s three-year high at $1.1474.

The dollar was slightly weaker at 142.99 yen, staying close to the six-month low of 142.05 it touched on Friday.

Market focus has been on the ever-shifting tariff headlines with the US removing smartphones and other electronics from its duties on China over the weekend providing some relief, although comments from Mr. Trump suggested the reprieve is likely to be short-term.

Mr. Trump’s imposition and then abrupt postponement of most tariffs on goods imported to the US has sown confusion, adding to the uncertainty for investors and policymakers around the world.

There was a greater sense of calm across the market on Tuesday. But given the uncertainty Mr. Trump and his vacillation over tariffs have stirred up, analysts expected the reprieve for the dollar to be short-lived.

The dollar index, which measures the US currency against six others, was at 99.641, not far from last week’s three-year low. The index is down over 4% this month, set for its biggest monthly drop since November 2022.

The more risk-linked currencies enjoyed a bout of strength. Sterling was up 0.1% at $1.347, while the Australian dollar rose 0.7% to $0.6371and the New Zealand dollar gained 0.71% to reach $0.592, near its highest in four and half months. — A.M.C. Sy with Reuters