THE PESO extended its climb against the dollar on Tuesday after the greenback posted losses overnight following US President Donald J. Trump’s inauguration.
The local unit closed at P58.49 per dollar on Tuesday, strengthening by three centavos from its P58.52 finish on Monday, Bankers Association of the Philippines data showed.
The peso opened Tuesday’s session sharply higher at P58.333 against the dollar. Its intraday best was at P58.33, while its worst showing was at P58.50 versus the greenback.
Dollars exchanged rose to $1.6 billion on Tuesday from $1.23 billion on Monday.
“The peso tracked the dollar’s weakness overnight on news that tariff impositions will be delayed,” a trader said in a phone interview.
The dollar was generally weaker after Mr. Trump’s inauguration speech did not immediately give plans for the tariffs to be imposed on China, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.
For Wednesday, the trader said markets will continue to monitor policy announcements from the Trump administration.
The trader expects the peso to move between P58.40 and P58.80 per dollar on Wednesday, while Mr. Ricafort sees it ranging from P58.35 to P58.55.
The dollar partially rebounded on Tuesday after sliding the day before as Mr. Trump suggested the US could impose tariffs on Canada and Mexico by Feb. 1, challenging suggestions his trade policy may be more gradual, Reuters reported.
Mr. Trump told reporters his team was thinking of tariffs around 25%, but offered no other specifics. He also floated the idea of universal tariffs, but said the US was not ready for that yet.
The dollar had fallen sharply on Monday after Mr. Trump’s first day included no specific plans on tariffs and officials signaled any new taxes would be imposed in a “measured” way, a major relief for trade-exposed currencies. A following trade memo merely directed agencies to investigate and remedy persistent trade deficits.
The dollar index, which measures the currency against six peers, rose 0.6% to 108.58, having shed 1.2% on Monday in what had been the sharpest one-day drop since late 2023.
The inauguration speech focused on emergencies in immigration and energy and a more expansionist foreign policy, including a pledge to take back the Panama Canal.
In his first term in office, Mr. Trump had a history of announcing imminent plans for policy proposals, including on healthcare and infrastructure, only for nothing to eventuate.
The dollar added 0.3% on the offshore Chinese yuan to 7.2896. Mr. Trump has previously threatened China with tariffs of up to 60%, but was vague on his plans on Monday. — A.M.C. Sy with Reuters
