THE peso again hit an all-time low of P59 against the dollar on Tuesday and the stock market also fell after US President-elect Donald Trump said that he would immediately raise tariffs once in office.
The day’s 1-centavo drop came just three trading days after the currency returned to the record low that was hit back in October 2022. It opened at P58.98:$1 and ranged from P58.95 to P59. Volume fell to P873 million from P1.057 billion on Monday.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. declined to comment.
A trader said the dollar strengthened after Trump’s tariff announcement and that the added pressure on the peso could “test the resolve of the BSP.”
“Consolidation will likely persist until a decisive break above P59,” the trader continued.
Rizal Commercial Banking Corp. chief economist Michael Ricafort, who also pointed to the tariff threat as having pulled down the peso, said the worsening rift between President Ferdinand Marcos Jr. and Vice President Sara Duterte was also a factor.
The benchmark Philippine Stock Exchange index, meanwhile, shed 43.14 points, or 0.63 percent, to end the day at 6,806.86.
The broader All Shares also fell, by 15.20 points or 0.40 percent, to 3,796.54.
Philstocks Financial Inc. research manager Japhet Tantiangco said “the market’s sideways trading ended in the negative territory amid the lack of a positive catalyst.”
He tagged the peso’s weakness and Trump’s social media posts that he would raise tariffs on goods from Mexico, Canada and China as having dampened sentiment.
Tantiangco described the day’s trading as “lethargic” with net value turnover at P3.83 billion, lower than the year-to-date average of P5.19 billion.
“Foreigners were net sellers with net outflows amounting to P556.57 million,” he added.
All sector indices but one closed in the red, with services down the most by 2.68 percent. Financials were the sole gainer, up by 0.54 percent.
On a company basis, decliners outnumbered gainers, 110 to 82, while 43 were unchanged.
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