Peso weakens on recovering global oil prices, US-China trade tension

The Philippine peso depreciated against the US dollar on Friday as renewed US-China trade tensions and recovering global oil prices dampened the local unit’s attractiveness.

The local currency lost 31.5 centavos to close at P50.76:$1 from Thursday’s finish at 50.445.

“The peso exchange rate closed closed weaker today after the latest increase in global oil prices to near 1.5-month highs amid record output cuts by major oil-producing countries and improved outlook on global oil market demand as more countries around the world gradually re-open their respective economies,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

The local unit was also affected by global market risk aversion after tensions increased recently between the US and China, as any escalation could slow down global economic growth, according to the economist.

“US President Trump is looking at Chinese companies that trade of NYSE (New York Stock Exchange) and Nasdaq but do not follow US accounting rules. Trump [also] does not want to talk to Chinese President Xi Jinping right now,” Ricafort said. —LDF, GMA News