Risk-off sentiment drags peso back to P52:$1 level

The Philippine peso depreciated back to the P52:$1 level on Wednesday, weighed down by risk-off sentiment during the trading session.

The local currency lost 24.5 centavos to close at P52.11:$1 from Tuesday's finish of P51.865:$1.

"There was risk-off sentiment so the dollar strengthened against the peso," a foreign exchange trader from a local bank said in a phone interview.

This comes as the trade tensions between the United States and China, the world's biggest economies, triggered global growth fears.

According to a report by Reuters, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin late on Monday said that China had backtracked from their commitments made during previous trade negotiations.

Prior to this, US President Donald Trump said he would raise tariffs on $200 billion worth of Chinese goods to 25% from the current 10%.

Aside from this, the trader noted that the market is anticipating two key events on Thursday, May 9 — the first-quarter economic growth to be released in the morning, and the central bank policy meeting in the afternoon. — Jon Viktor D. Cabuenas/RSJ, GMA News