MANILA – The Philippine peso depreciated against the US dollar on Friday as US President Donald Trump’s threat to impose new tariffs on Chinese imports sent jitters of escalating trade war between the two economies.
The local currency lost 23 centavos to close at P51.43:$1 from 51.2 on Thursday.
“The peso closed weaker today vs. the US dollar at 51.43, weakest in more than three weeks, after yesterday’s 51.20, amid the escalating/worsening US-China trade war after US President Trump imposed a 10 percent tariff on an additional USD300 billion US imports from China,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.
“Peso is also weaker amid market expectations of a cut in local policy rates on the next monetary policy meeting on August 8,” Ricafort said.
The central bank’s policy-setting Monetary Board will have its fifth meeting late next week to decide whether it will reduce further interest rates amid a low inflation environment.
Week-on-week, the local unit shed 37.5 centavos from P51.055 on July 26. The peso was weaker by P1.62 from 49.810 on Jan. 3, the first trading day of 2018. (GMA News)
