Peso firms up as dollar weakens amid US-China trade war

The Philippine peso appreciated against the dollar on Friday as the ongoing trade dispute between the US and China weighed on the greenback.

The local currency gained 3.5 centavos to close at P54.04:$1 from 54.075 on Thursday.

"The US dollar continued to decline against major global currencies amid the increasing trade war between US and China," Rizal Commercial Banking Corp. head economist Michael Ricafort said.

The dollar index fell to its lowest in more than ten weeks as the US market took the ongoing trade dispute in stride. 

"Recent pronouncements by China that it will not devalue the yuan to spur Chinese exports also led to gains in other Asian currencies, including the peso," Ricafort said.

Week-on-week, the local unit gained 7 centavos from P53.97:$1 on September 14. The peso was weaker by P4.23 from 49.810 on Jan. 3, the first trading day of 2018. — Ted Cordero/RSJ, GMA News