THE PESO sank back to the P58-per-dollar level on Monday as remittance growth slowed in December, adding to uncertainties over the Trump administration’s policies.
The local unit closed at P58.03 per dollar on Monday, weakening by 20 centavos from its P57.83 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s trading session stronger at P57.777 per dollar, which was its intraday best. It was trading at the P57 level early in the session, but it eventually succumbed to weakness, ending closer to its intraday low of P58.05 versus the greenback.
Dollars exchanged went down to $1.16 billion on Monday from $1.66 billion on Friday.
The peso declined against the dollar on Monday as the market reacted to overseas Filipino worker (OFW) remittances data, a trader said by phone interview.
The slower growth in cash remittances in December weighed on the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Money sent home by OFWs through banks rose by 3% to a record $3.38 billion in December from $3.28 billion in the same month a year ago, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.
This was slower than the 3.3% year-on-year increase posted the month prior.
For 2024, cash remittances climbed 3% to an all-time high of $34.49 billion from $33.49 billion in 2023. This was in line with the BSP’s forecast of a 3% annual growth in remittances.
The peso also dropped after US President Donald J. Trump’s fresh tariff pronouncements, Mr. Ricafort added.
For Tuesday, the trader expects the peso to move between P57.80 and P58.20 per dollar, while Mr. Ricafort said the local unit could range from P57.90 to P58.10.
The dollar hovered near its lowest in two months on Monday after investors dialed down their bets on US tariffs, Reuters reported.
The dollar was struggling to recoup its losses after a selloff on the back of Friday’s weak US retail sales data and as investors cheered a delay in the implementation of Mr. Trump’s reciprocal tariffs.
The dollar index last stood at 106.85, up 0.1%, after tumbling 1.2% last week. — Aaron Michael C. Sy with Reuters
