Peso caps volatile week at P56.47 vs. greenback
Manila, Philippines – The peso closed unchanged against the dollar in thin trade on Friday, capping a week that saw investors whiplashed by a flood of tough tariff letters from US President Donald Trump.
The currency settled at P56.47 per dollar, steady from Thursday’s close, but losing by 0.12% from the previous week’s close, data from the Bankers Association of the Philippines showed.
“Tariffs returned to the forefront as US president Donald Trump’s latest policy announcements stirred currency volatility throughout the week,” BDO’s research unit said in a note sent to investors.
Trump’s letter to President Ferdinand Marcos, Jr. was straightforward about slapping a 20 percent tariff on Philippine goods exported to the US beginning Aug. 1, noting that trade relations between the two allies have been “far from reciprocal.”
“Despite these developments, traders remain optimistic about further negotiations, which helped the peso take the tariff news in stride,” BDO’s research note read.
“Trade-related news is expected to drive volatility in next week's trading,” it added.
Volume of dollars exchanged thinned to $1.2 billion on Friday, from $1.4 billion the day before.
“Markets will also watch for the Fed's Beige Book and US June inflation data (CPI, PPI, import price index), which could influence rate cut expectations,” BDO said.
Business News Anchor Lois Calderon contributed to this story.
