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Peso marks fresh 12-year low as US-China trade war deepens


The Philippine peso weakened amid a deepening tariffs battle between the world’s two largest economies, to mark a fresh 12-year low on Monday, after China and the United States canceled trade discussions .

The local currency depreciated by 19 centavos to at P54.23:$1 from P54.04:$1 on Friday, the weakest since Nov. 24, 2005 when the pair closed at P54.30.

Earlier this month, the peso hit P54.13:$1, the previous 12-year low since the hitting P54.155:$1 on Dec. 2, 2005.

“The peso depreciated to a new 12-year record low following news of China canceling its trade discussions with the United States,” Guian Angelo Dumalagan, market economist at Land Bank of the Philippines, said in an email interview.

According to a report by Reuters, China canceled mid-level trade talks with the United States and the proposed visit to Washington by vice premier Liu originally scheduled for this week.

Dumalagan noted there was dollar bargain-hunting ahead of the policy meeting of the Federal Open Market Committee (FOMC) on Thursday.

“Continued bargain-hunting for the dollar ahead of a likely interest rate hike from the US Federal Reserve on Thursday,” he said. —VDS, GMA News

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