Peso falls ahead of US trade deadline

THE PESO fell against the dollar on Monday as market sentiment turned cautious ahead of the US deadline for finalizing trade deals with its partners.

- Aaron Michael C. Sy with Reuters

"The market closed higher amid revived trade tensions regarding tariff jitters. Trump is looking to impose tariffs on BRICS countries," a trader said by telephone.

It closed at P56.685 versus the dollar, down by 28.5 centavos from its P56.40 finish on Friday, based on Bankers Association of the Philippines data posted on its website.

The peso opened at P56.48 and traded between P56.46 and P56.71 throughout the session. Trading volume eased to $1.53 billion from $1.62 billion on Friday.

The peso’s drop was largely driven by Trump’s threats to implement an additional 10% tariff on nations aligning with the policies of the BRICS (Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates), Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.

The warning came just days before the original July 9 deadline for trade deals tied to the US reciprocal tariff policy.