Peso slumps to hit fresh trough
THE PESO slumped further against the dollar on Monday, hitting a fresh low, as trade tensions between the United States and China continued to worry investors.
The local unit ended Monday’s session at P53.48 against the dollar, 21 centavos weaker than the P53.27-per-greenback finish on June 15.
This is another new low for the local unit in nearly 12 years or since it closed at P53.55 per dollar last June 29, 2006.
The peso traded weaker the whole day, opening the session at P53.46 against the US currency. It slipped to as low as P53.50, while its intraday high stood at P53.40 versus the greenback.
Dollars traded declined to $ 568 million from the $ 796.45 million that switched hands last Thursday.
Analysts interviewed on Monday said the peso slumped anew on the back of the renewed trade tensions between the world’s two biggest economies.
“This movement can be taken from the global trade worries due mainly from China immediately responding from [ the tariffs imposed by the US],” Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said in a text message.
“Any trade war between the US and China could reduce US imports and could strengthen the US dollar as a result, especially versus other global and emerging market currencies,” Rizal Commercial Banking Corp. Head of Economics and Industry Research Division Michael L. Ricafort said.
A foreign currency trader said the trade spat between Washington and Beijing prompted investors to flock to safe-haven currencies. •