Peso to move sideways amid fresh tariff wave

THE PESO could trade sideways against the dollar this week as the market remains cautious after the Trump administration announced new tariffs over the weekend.

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The local unit closed unchanged at P56.47 per dollar on Friday, Bankers Association of the Philippines data showed.

Meanwhile, week on week, the peso weakened by seven centavos from its P56.40 per dollar close on July 4.

The peso was flat against the dollar on Friday as "mixed external signals, stable remittances, and inward FDIs (foreign direct investments) offered support, while geopolitical risks and US rate expectations capped gains," Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was also supported by the government's plans to negotiate with the United States about the 20% tariffs set to be imposed on Philippine goods by next month.

"For this week, key factors to watch include US inflation data, Fed guidance, and local trade and fiscal developments," Mr. Rivera said.

He said the peso could trade within the P56.50 to P57.50 range this week "if risk sentiment remains stable."

Meanwhile, Mr. Ricafort sees the local unit moving between P56.25 and P56.75 versus the greenback in the coming days.