Peso weakens slightly on likely delay of Trump-Xi meeting

The Philippine peso closed weaker on Friday as investors bought dollar positions amid the expected delay of a meeting between the leaders of two of the world's biggest economies to forge a trade pact.

The local currency shed 5 centavos to close at P52.65:$1 from 52.60 on Thursday.

"The peso slightly depreciated on some safe-haven dollar demand after news came out concerning the reduced chances that US and China will be able to close a trade deal within this month," Land Bank of the Philippines market economist Guian Dumalagan said.

US President Donald Trump and Treasury Secretary Steven Mnuchin said on Thursday that discussions with China to end a months-long trade war are progressing quickly, though Trump said he could not say whether a final deal would be reached.

Trump and Chinese President Xi Jinping had been expected to hold a summit in Florida this month, but no date has been set. A person familiar with the matter told Reuters there "were rumblings" about a possible meeting late next month.

Uncertainties over the US-China trade deal affect prospects of global growth, which in turn could have an adverse impact on Asian and emerging market economies, according to Rizal Commercial Banking Corp. lead economist Michael Ricafort. — RSJ, GMA News