Peso climbs on tariff talk hopes

THE PESO recovered against the dollar on Tuesday on hopes for negotiations on the Trump administration’s reciprocal tariffs.

The local unit closed at P57.31 per dollar on Tuesday, rising by 12 centavos from its P57.43 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s trading stronger at P57.35 against the dollar. It traded better than Monday’s close the whole session as its worst showing was at just P57.38, while its intraday best was at P57.145 versus the greenback.

Dollars exchanged went down to $1.97 billion on Tuesday from $2.17 billion on Monday.

The peso rose amid broad dollar weakness amid prospects of tariff talks between the United States and its trading partners, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The US dollar fell on Tuesday on hopes that US President Donald J. Trump will enter negotiations over his sweeping tariffs that have roiled markets for three days, Reuters reported.

The dollar was last down 0.4% against the Japanese yen, traditionally seen as a safe haven at times of market stress, at 147.28 yen to the dollar. The US currency touched a six-month low against the yen on Friday.

Meanwhile, the US dollar index, which measures the currency against six peers, was 0.3% lower at 103.11.

It has fallen around 0.7% since Mr. Trump announced the tariffs on April 2, as investors have weighed up the hit to the US economy against the currency’s typical role as a shield from market slumps.

Investors on Tuesday gleaned some positive signs from the Trump administration about tariff talks. Treasury Secretary Scott Bessent said on Monday he hoped negotiations would bring levies down.

Mr. Trump said Japan was sending a team to start negotiations, helping Japanese equities rally sharply overnight.

However, China dug in and criticized what it called “blackmail” from the United States over Mr. Trump’s threat of additional 50% tariffs in response to China’s initial retaliation. Meanwhile, the European Union floated 25% counter-tariffs on US goods.

“Locally, unemployment data came out lower, strengthening the peso. In the afternoon, there was some demand for the dollar due to uncertainties with tariffs and positioning ahead of US inflation data,” a trader said in a phone interview.

Preliminary data from the Philippine Statistics Authority’s Labor Force Survey showed that the jobless rate was at 3.8% in February, slightly higher than 3.5% a year ago but lower than 4.3% in January.

For Thursday, the trader expects the peso to move between P57.10 and P57.50 per dollar, while Mr. Ricafort said it could range from P57.20 to P57.40. — Aaron Michael C. Sy with Reuters