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Peso seen stabilizing with 'slight weakness' as Trump ratchets up trade war

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ABS-CBN News

<figure class="op-interactive"><iframe src="https://www.youtube.com/embed/IsuaOOvA468?enablejsapi=1"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><p>MANILA -- The peso will likely stabilize at the P52 per dollar level in the near term, with &quot;slight weakness&quot; as the heightened trade tensions between US and China propped up the dollar against emerging market currencies, an analyst said Friday.</p><p>The peso opened at P51.32 to the dollar, from P51.20 on Thursday.</p><p>US President Donald Trump&#x27;s threat to raise tariffs on more Chinese groups is &quot;clearly positive for the dollar&quot; with a stock selloff in Asia driving demand for the greenback, said Divya Devesh, Asia foreign exchange strategist at Standard Chartered.</p><p>Trade tensions can also hit exports, Devesh said. August is also &quot;typically negative&quot; for the peso, with the dollar stronger against the dollar during the month in the last 8 years, he said.</p><p>&quot;Domestically and externally, things look negative for the peso so we expect slight weakness,&quot; Devesh said.</p><p>&quot;Near term, it looks like the dollar could strengthen further against emerging market currencies,&quot; he said.</p><p>The peso&#x27;s performance against the dollar in the January to June period was &quot;phenomenal,&quot; Devesh said, adding &quot;it will be very difficult to repeat that in the second half.&quot;</p>