Peso climbs to three-week high as recession fears hit dollar

THE PESO strengthened to an over three-week high against the dollar on Monday as key US data released on Friday stoked renewed recession fears in the world’s largest economy.

The local unit closed at P57.21 per dollar on Monday, rising by 17.1 centavos from its P57.381 finish on Friday, Bankers Association of the Philippines data showed.

This was the peso’s best finish in more than three weeks or since it ended at P57.206 per dollar on March 7.

The peso opened Monday’s session stronger at P57.35 against the dollar, which was already its worst showing for the day. Its intraday best was its closing level of P57.21 versus the greenback.

Dollars exchanged went down to $1.18 billion on Monday from $1.62 billion on Friday.

The dollar was generally weaker on recession concerns following the US personal consumption expenditures (PCE) price index data and the consumer sentiment and inflation expectations reports released on Friday, a trader said in a phone interview.

“The market’s confidence was down and inflation expectations were higher due to US President Donald J. Trump’s tariffs as markets saw their implementation as rushed, which is bad for the economy as it will make inflation higher. The dollar was weaker across the board,” the trader said.

The peso was also supported by an expected increase in remittances ahead of the upcoming holidays this month, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Wednesday, the trader said the market may stay cautious ahead of the reciprocal tariffs set to be announced by the Trump administration on April 2. The trader expects the peso to move between P57.10 and P57.50 per dollar, while Mr. Ricafort said it could range from P57.10 to P57.20.

Philippine financial markets are closed on April 1 (Tuesday) in observance of Eid’l Fitr or the end of Ramadan. — AMCS