Peso slips to fresh 12-year low on renewed trade war concerns

The Philippine peso slipped to a fresh 12-year low on Monday, following renewed tensions in the trade war among the world's largest economies.

The local currency lost 2 centavos to close at P53.53:$1 from 53.51 on Friday, its the weakest since closing at P53.55 on June 29, 2006.

“The peso recorded new lows today after President Trump’s negative remark on trade towards the European Union over the weekend,” Guian Angelo Dumalagan, market economist at Land Bank of the Philippines, said.

Over the weekend, US President Donald Trump was reported to have said he would be supportive of whatever Britain would decide in trade relations with the European Union post-Brexit.

“Whatever you do is OK with us, just make sure we can trade together, that’s all that matters. The United States looks forward to finalizing a great bilateral trade agreement with the United Kingdom. This is an incredible opportunity for our two countries and we will seize it fully,” Reuters reported quoting Trump.

“This rhetoric renewed trade war concerns and likewise drove safe-haven buying towards the US dollar,” Dumalagan said. —VDS, GMA News