Peso slips before Holy Week break 

THE PESO inched down against the dollar on Wednesday on profit taking before the trading break. 

The local unit closed at P56.80 per dollar, slipping by three centavos from its P56.77 finish on Tuesday, Bankers Association of the Philippines data showed. 

The peso opened Wednesday’s session weaker at P56.80 against the dollar, which was also its worst showing for the day. Meanwhile, it reached an intraday high of P56.50 versus the greenback. 

Dollars traded went up to $2.3 billion on Wednesday from $2.13 billion on Tuesday. 

Philippine financial markets are closed on April 17 (Maundy Thursday) and 18 (Good Friday). 

“The dollar-peso initially rose to P56.50 on mounting concerns over the global economy. However, [there was] profit taking at the short position, allowing the pair to close at P56.80 ahead of the long weekend and US retail sales data,” a trader said in a phone interview. 

The peso depreciated slightly as players took advantage of the weaker dollar recently to secure their funding requirements, especially before the Holy Week break, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.  

The dollar resumed its descent on Wednesday, dropping across the board and losing the most ground to the Swiss franc and the euro as a new bout of tariff-induced nerves gripped markets, Reuters reported. 

The dollar has been a casualty of shaken confidence in the United States as radical tariffs have been threatened, enforced and then partially postponed over a wild few weeks for world trade and markets. 

While it managed to find its footing earlier this week — even eking out small gains on Tuesday — by Wednesday, European trading of the US currency was headed back towards last week’s lows. 

The latest jitters follow a US decision to impose restrictions on chip exports to China, and President Donald J. Trump’s launch of a probe into whether critical minerals should face tariffs. 

The dollar was last down 1.2% on the Swiss franc at 0.8137 francs, just slightly above Friday’s 10-year low and was also 0.8% lower against the Japanese yen at 142.1, a seven-month low. 

The euro has had an overdue pullback from a surge to last week’s three-year high of $1.1474. But by the Asia afternoon it had found a footing and advanced 0.6% to $1.1346 — sending the dollar index back below 100. 

Traders were also keeping an eye on talks between Japan’s economy minister Ryosei Akazawa and Treasury Secretary Scott Bessent, as there is speculation the countries agree on a stronger yen. 

Positioning, however, as of last week’s data, showed the largest net yen long on record stretching back to 1986, meaning there could be a heavy reversal if there are signs the talks do not go well. 

Also still to come are US retail sales, an appearance from US Federal Reserve Chairman Jerome H. Powell and a Bank of Canada meeting where markets are uncertain whether policymakers will cut or hold interest rates. — A.M.C. Sy with Reuters