Peso rises amid trade concerns

The peso edged higher against the dollar on Tuesday amid mixed signals on renewed trade tensions between the United States and China and as markets looked for new trading drivers.

The local unit closed at PHP 58.215 versus the greenback, rising by three centavos from its PHP 58.245 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session slightly stronger at PHP 58.222 versus the dollar. Its intraday best was at PHP 58.155, while its worst showing was at PHP 58.305 against the greenback.

Dollars exchanged went down to USD 1.52 billion on Tuesday from USD 1.66 billion on Monday.

The peso inched up against the dollar amid signals from US President Donald J. Trump that trade tensions with China could be easing, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Trade and tariffs have been the main focus since dramatic market moves on Friday when Mr. Trump threatened to slap additional 100% tariffs on goods from China, in response to Beijing’s curbing of exports of critical minerals, Reuters reported.

While a more conciliatory tone from Mr. Trump at the weekend helped fuel some optimism at the start of this week, Tuesday served as a stark reminder that ties between the two nations remain on thin ice.

The United States and China on Tuesday were set to begin charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil.

“The dollar-peso closed a tad lower amid range trading as there were no major catalysts,” a trader said in a phone interview.

For Wednesday, the trader expects the peso to move between PHP 58 and PHP 58.40 per dollar, while Mr. Ricafort sees it ranging from PHP 58.10 to PHP 58.30. — AMCS with Reuters