THE PESO dropped against the dollar on the first trading day of 2025 as the market stayed cautious ahead of US President-elect Donald J. Trump’s return to the White House this month and amid a lack of fresh trading drivers.
The local unit closed at P57.91 per dollar on Thursday, weakening by 6.5 centavos from its P57.845 finish on Dec. 27, Bankers Association of the Philippines data showed.
The peso opened Monday’s session slightly weaker at P57.90 against the dollar. Its worst showing was at P58.04, while its intraday best was at P57.78 versus the greenback.
Dollars exchanged went down to $1.195 billion on Thursday from $1.52 billion on Friday.
Philippine financial markets were closed for holidays on Dec. 30, Dec. 31, and Jan. 1.
“The dollar-peso ended higher but the market traded mostly sideways due to lack of fresh catalysts following the holidays,” a trader said by phone.
The dollar was generally stronger amid concerns over Mr. Trump’s potentially inflationary policies, which could lead to a more hawkish US Federal Reserve, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For Friday, the trader sees the peso moving between P57.70 and P58.10 per dollar, while Mr. Ricafort expects it to range from P57.80 to P58.
The US dollar wobbled at the start of 2025 trade on Thursday after a strong year of gains against most currencies, with the yen anchored near its lowest level in more than five months as investors ponder US interest rates staying higher for longer, Reuters reported.
The dollar index, which measures the US currency against six others, eased 0.2% to 108.32 on Thursday but remained close to the two-year high touched on Tuesday. The index rose 7% in 2024 as traders drastically cut back rate-cut expectations. — A.M.C. Sy with Reuters
