Peso falls amid US-China trade talks

The Philippine peso depreciated against the greenback for the second consecutive trading day on Thursday as the US dollar gained more strengthen amid the trade talks between China and the United States.

The local currency lost 5.5 centavos to close the session at P53.480:$1 from 53.425 on Wednesday.

“Weakness of the peso may have been because of the trade talks. At the same time, the US dollar also jumped ahead of a major meeting of global central bankers,” Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines, said.

Officials of the world’s two biggest economies met in Washington for the first time in over two months to address the deepening trade conflict, ahead of the implementation of new tariffs on Thursday.

“Note as well that along with the trade talks resuming between the US and China, is the imposition of $16 billion worth of tariffs against each other,” Asuncion said.

According to a report by Reuters, the United States Customs and Border Protection confirmed that at 12:01 a.m. EDT on Thursday, it would begin collecting additional 25-percent duties on Chinese imports, valued at $16 billion. —VDS, GMA News