Peso slides as US and China ink tariff truce

THE PESO depreciated against the dollar on Tuesday after the US and China announced they would temporarily drop additional tariffs imposed on each other.

- — Aaron Michael C. Sy with Reuters

It closed at P55.795 per dollar, 28.5 centavos weaker than its P55.51 finish on Friday, according to Bankers Association of the Philippines data posted on its website.

The peso opened weaker at P55.80 against the dollar. Its worst showing was at P55.90 while its intraday best was at P55.58 versus the greenback.

Dollars exchanged rose to $1.89 billion from $1.65 billion on Friday.

The dollar generally strengthened against the dollar on Tuesday after the US and China agreed to drop extra tariffs imposed on each other for the next 90 days, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

“The dollar-peso closed higher as players reacted to US-China trade deals resulting in lower tariffs,” a trader likewise said by telephone.

On Monday, the US announced it would lower the tariffs imposed on Chinese goods to 30% from 145%, while China would cut levies on US products to 10% from 125%, after trade talks in Geneva, Switzerland.