Peso tumbles to three-week low as tariff worries drag sentiment

THE PESO sank to a three-week low against the dollar on Wednesday as the market remained worried over the potential economic impact of the Trump administration’s plan to impose reciprocal tariffs starting next week.

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The local unit closed at P57.69 per dollar on Wednesday, weakening by nine centavos from its P57.60 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s worst finish in over three weeks or since it ended at P57.753 on March 4.

The peso opened Wednesday’s session a tad stronger at P57.58 against the dollar. It dropped to as low as P57.74 intraday, while its best showing was at P57.57 versus the greenback.

Dollars exchanged declined to $1.34 billion from $1.54 billion on Tuesday.

“The dollar-peso closed lower on risk-o sentiment and due to momentum from yesterday’s announcement by the Bangko Sentral ng Pilipinas (BSP) on a possible rate cut in April,” a trader said in a text message, noting that this could result in a narrower rate differential with the US Federal Reserve.

The US dollar was slightly higher on Wednesday as nervy traders awaited clarity on President Donald J. Trump’s trade policy ahead of a new round of tariffs next week, Reuters reported.