Peso slips as markets await clarity on Trump tariffs

THE PESO slipped against the dollar on Wednesday as markets continue to react to US President Donald J. Trump first wave of policy announcements.

The local unit closed at P58.51 per dollar on Wednesday, down by two centavos from its P58.49 finish on Tuesday, Bankers Association of the Philippines data showed.

The peso opened Wednesday’s session stronger at P58.35 against the dollar, which was also its intraday best. It dropped to as low as P58.605 versus the greenback.

Dollars exchanged inched down to $1.59 billion on Wednesday from $1.6 billion on Tuesday.

“The dollar-peso traded cautiously as players awaited announcements on Trump’s policies,” a trader said in a phone interview.

The dollar was moving higher early on Wednesday as markets assessed the potential economic impact of Mr. Trump’s policies, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message. However, the greenback dropped anew later in the day.

For Thursday, the trader expects the peso to move between P58.30 and P58.60 per dollar, while Mr. Ricafort sees it ranging from P58.40 to P58.60.

The dollar struggled to regain ground against major currencies on Wednesday, hovering close to two-week lows as a lack of clarity on Mr. Trump’s plans for tariffs kept financial markets guessing, Reuters reported.

Mr. Trump said late on Tuesday that his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.

He also vowed duties on European imports, without providing further details.

Despite those threats, a lack of specific plans from Mr. Trump’s first day in office saw the dollar start the week with a 1.2% slide against a basket of major peers. It stabilized on Tuesday, ending flat after an attempted rebound fizzled, with US officials saying any new taxes would be imposed in a measured way.

The dollar index, which tracks the currency against six top rivals, eased 0.1% to 108 on Wednesday, not far from the two-week low of 107.86 it touched on Tuesday.

Mr. Trump on Monday signed a broad trade memorandum, ordering federal agencies to complete comprehensive reviews of a range of trade issues by April 1.

The greenback rose 0.13% to 155.715 yen, edging up slightly from the one-month low it touched the day before. — A.M.C. Sy with Reuters