Filtered By: Money
Money

Peso weakens vs. dollar on US-China trade talks


The Philippine peso weakened against the US dollar on Monday, amid the trade negotiations between the two world’s biggest economies.

The local currency lost 28.5 centavos to close Monday at P52.800:$1 from P52.515:$1 Friday.

“It’s the trade negotiation progress that’s keeping sentiment low and less positive. Equities markets in the region are mixed including currencies,” Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines, said.

“It seems that the status of the current trade showdown and other economic headlines are negative toward the peso,” he said.

According to a report by Reuters, Chinese stocks rallied on Friday on reports that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports, which was later denied.

The same report noted that US President Donald Trump over the weekend revealed that there has been progress toward a possible trade deal with China, but denied considering lifting tariffs.

“For the rest of the week, I would expect the weakness to continue until some positive news comes out of the said trade talks. I am also expecting a robust Q4 GDP print this Thursday that can influence the peso’s strength,” said Asuncion.

The Philippine Statistics Authority is scheduled to release fourth-quarter and full-year 2018 economic growth figures on Thursday, January 24. —VDS, GMA News

LOADING CONTENT