Peso weakens on uncertainty about US-China trade truce

The Philippine peso weakened against the US dollar on Wednesday amid uncertainties about the truce between the US and China in their trade conflict.

The local currency shed 22 centavos to close at P52.74:$1 from 52.52 on Tuesday.

The slower inflation print of 6 percent in November from 6.7 percent in October failed to boost the local unit.

“The local currency depreciated, despite the softer-than-expected inflation report today,  on renewed risk-off sentiment as details of the US-China trade truce remain unclear to global markets,” Land Bank of the Philippines market economist Guian Angelo Dumalagan said.

November’s inflation is within the Bangko Sentral ng Pilipinas’ forecast range of 5.8 percent to 6.6 percent and slower than the 6.3 percent estimate of the Department of Finance.

Over the weekend, US President Donald Trump and Chinese President Xi Jinping agreed to hold off new tariffs for 90 days.

However, different dates from the White House regarding start of the three-month trade ceasefire and skepticism over an actual resolution in the agreed negotiating window dampened the investors’ mood. —VDS, GMA News