Peso flat vs dollar as market awaits fresh leads – BusinessWorld Online
THE PESO was flat against the dollar on Thursday as markets continue to monitor developments in the Trump administration trade policies and before the release of US producer inflation data.
The local unit closed unchanged at P57.36 per dollar on Thursday, Bankers Association of the Philippines data showed.
The peso opened Wednesday’s trading session weaker at P57.39 against the dollar. Its worst showing was at P57.41, while its intraday best was at P57.25 versus the greenback.
Dollars traded went up to $1.25 billion from $1.16 billion on Tuesday.
The peso mostly moved sideways on Thursday as the market remained cautious while awaiting fresh leads, including potential tariff policy announcements from US President Donald J. Trump, a trader said by phone.
“The peso resumed gains earlier in the day, partly after recent political noise [that have been] manageable so far,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The market was also looking ahead to the release of February US producer price index data overnight, Mr. Ricafort added.
For Friday, the trader sees the peso moving between P57.20 and P57.50 per dollar, while Mr. Ricafort expects it to range from P57.25 to P57.45.
The dollar struggled for traction on Thursday as investors worried about the impact of an escalating global trade war on US inflation and growth, Reuters reported. Against a basket of currencies, the dollar stood at 103.57, close to a five-month low.
A rise in global trade tensions and worries over US recession risks have rattled global markets and sparked huge volatility in currencies, as traders seesaw between relief and angst over Mr. Trump’s whipsaw policy changes.
Mr. Trump threatened further tariffs on European Union goods on Wednesday as major US trading partners said they would retaliate against the tariffs imposed so far.
US consumer inflation rose slightly less than expected in February, but the relief it offers could be temporary as the data did not fully capture the cascade of Mr.Trump’s tariffs. — A.M.C. Sy with Reuters
