Peso slides back to P59:$1

The Philippine peso depreciated back to the P59:$1 level on Tuesday after US President-elect Donald Trump hinted at additional tariffs on goods from several countries.

The local currency lost a centavo to close at P59:$1 from Monday’s finish of P58.99:$1. This matched the record-low established in October 2022, which was also seen last week.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort attributed Tuesday’s depreciation to Trump’s remarks that he would sign an executive order that would slap a 25% tariff on goods coming from Mexico and Canada and an additional 10% on China until it blocks the smuggling of fentanyl.

He also cited the local “political noises” over the weekend.

Last Saturday, Vice President Sara Duterte said she spoke with someone to kill to kill President Ferdinand “Bongbong” Marcos Jr., First Lady Liza Araneta Marcos, and House Speaker Martin Romualdez if she were slain.

Duterte later said her remarks were not a threat and that she only highlighted the alleged threat to her security. She also compared this to her earlier declaration that should attacks against her continue, she would excavate the remains of former President Ferdinand Marcos Sr. and throw them in the West Philippine Sea.

On Monday, Marcos pledged to prevent "criminal attempts," stating that if assassinating a sitting president was that simple, imagine how much easier it would be for ordinary citizens.

Moving forward, Ricafort said the peso could be strengthened by the recent upgrade of S&P Global Ratings’ outlook on the Philippines to positive from stable, citing what it described as “effective policymaking.”  — VBL, GMA Integrated News