Peso weak­ens fur­ther

Business World - - Banking&finance -

THE PESO ex­tended its drop against the dol­lar to hit an­other three-week low, wors­ened by mar­ket jit­ters over the US-China trade dis­pute.

The lo­cal unit ended the ses­sion at P52.76 ver­sus the dol­lar on Thurs­day, down two cen­tavos from the P52.74-per-dol­lar fin­ish the pre­vi­ous day. This was the peso’s worst per­for­mance since it closed at P52.805 against the dol­lar last Nov. 15.

The peso opened the ses­sion a tad stronger at P52.70 against the dol­lar, which was yes­ter­day’s best show­ing. On the other hand, it slid to as low as P52.91 ver­sus the US cur­rency in­tra­day.

Dol­lars traded de­clined to $993.25 mil­lion ver­sus the $1.283 bil­lion that switched hands the pre­vi­ous ses­sion.

Ruben Carlo O. Asun­cion, UnionBank of the Philip­pines chief econ­o­mist, said the peso’s de­cline may be at­trib­uted to the “mar­ket jit­ters” about the fu­ture of the trade truce be­tween China and the United States.

“Ner­vous­ness came from the ar­rest of Huawei CFO [chief fi­nan­cial of­fi­cer] in Canada,” Mr. Asun­cion said in a text mes­sage. “The ar­rest of the Huawei CFO may un­der­mine the truce. China has al­ready in­ti­mated its protest about the said ar­rest.”

For to­day, Mr. Asun­cion ex­pects the peso to trade be­tween P52.50 and P52.80, while a trader gave a P52.70-P52.90 range.

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