Peso drops vs dollar before key US data
THE PESO weakened on Monday as the dollar held on to its recent gains as markets await the release of key US data and amid hopes for the de-escalation of trade tensions between the United States and China.
The local unit closed at P56.42 per dollar on Monday, dropping by 15.5 centavos from its P56.265 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened the session a tad weaker at P56.28 against the dollar. It dropped to as low as P56.47 intraday, while its best showing was at P56.24 versus the greenback.
Dollars traded went down to $1.57 billion on Monday from $1.85 billion on Friday.
The local unit closed lower against the dollar “amid cautious trading ahead of the key US data releases,” a trader said in a phone interview.
The peso-dollar pair mostly moved sideways amid a lack of leads, the trader added.
Key US economic reports to be released this week include first-quarter gross domestic product data, the March personal consumption expenditures price index, and April jobs report.
The peso dropped as the dollar was stronger amid easing tensions between the US and China, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Tuesday, the trader expects the peso to move between P56.20 and P56.60 per dollar, while Mr. Ricafort said it could range from P56.30 to P56.50.
On Monday, the dollar was mostly steady but struggling to make headway as trade wariness lingered, Reuters reported.
At 143.81 yen and $1.1345 per euro, the greenback has, for now, found a footing, while staying on course for its largest monthly fall in nearly 2-1/2 years as US President Donald J. Trump has rattled confidence in the dependability of US assets.
It is down more than 4% on both the euro and the yen in April, though bounced at the end of last week on a conciliatory shift in the tone of US-China relations.
Last week, both sides seemed to soften their respective stances, with the Trump administration signalling openness to reducing tariffs and China exempting some imports from its 125% levies.
Yet where Mr. Trump insists there has been progress, and that he has spoken with President Xi Jinping, Beijing has denied trade talks are occurring and on Sunday, Treasury Secretary Scott Bessent did not say that tariff talks were under way. — A.M.C. Sy with Reuters
