Peso slides vs dollar on fresh tariff concerns

The peso weakened versus the dollar on Tuesday after US President Donald J. Trump imposed temporary tariffs after the US Supreme Court struck down his “reciprocal” levies, bringing renewed uncertainty to markets.

The local unit fell by 18 centavos to close at PHP 57.755 against the greenback from its PHP 57.575 finish on Monday, data from the Bankers Association of the Philippines showed.

The currency opened Tuesday’s trading session weaker at PHP 57.66 per dollar. Its intraday high was at PHP 57.645, while its weakest showing was at PHP 57.82 versus the greenback.

Dollars traded went down to USD 1.358 billion from USD 1.716 billion on Monday.

“The dollar-peso traded higher on risk-off sentiment after President Trump reimposed tariffs on trading partners despite the US Supreme Court ruling and amid market caution ahead of Trump’s state of the nation address as players expect him to comment on Iran and tariffs,” a trader said by phone.

The peso was also dragged by higher global crude oil prices on Wednesday due to heightening tensions between the US and Iran, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader sees the peso moving between PHP 57.50 and PHP 57.85 per dollar, while Mr. Ricafort expects it to range from PHP 57.65 to PHP 57.90.

The yen weakened on Tuesday as markets weighed the fallout on global trade from renewed turbulence over Mr. Trump’s tariff regime, Reuters reported.

The dollar clawed back losses as China and Japan reopened following holidays and Mr. Trump warned countries against retreating from recent trade deals after the Supreme Court struck down his emergency tariffs.

Washington’s latest tariff threats are clouding the outlook for global trade. The Supreme Court ruled on Friday that Trump’s use of a 1977 emergency law to impose tariffs exceeded his authority, but hours later the president invoked a different law and imposed a new levy on all imports.

The yen weakened 0.3% to JPY 155.05 per dollar. The dollar index, which measures the greenback against a basket of currencies, rose 0.12% to 97.81.

The euro barely budged, down just 0.04% at USD 1.1779, while sterling was little changed at USD 1.3486.

Mr. Trump said on Saturday he would raise a temporary tariff from 10% to 15% on US imports from all countries, the maximum level allowed under the law. On Monday, he took to social media to say that countries that “play games” in the wake of the Supreme Court’s ruling would be hit with even higher duties.

Traders are also focused on rising geopolitical tensions.

The State Department is pulling out non-essential government personnel and their eligible family members from the US embassy in Beirut, a senior State Department official said on Monday, amid growing concerns about the risk of a military conflict with Iran — A.M.C. Sy with Reuters