Peso weakens due to US-China tensions, retail sales decline

On Monday, the Philippine peso opened softer against the US dollar due to growing tensions between the United States and China.

Land Bank of the Philippines chief economist Guian Angelo Dumalagan attributed the depreciation to concerns over trade tensions and a sharp decline in US retail sales.

Retail purchases in the US fell 21.6% year-on-year and 16.4% month-on-month in April, according to data from the Commerce Department.

On Friday, the peso weakened further as recovering global oil prices and renewed US-China trade tensions affected its attractiveness.

Rizal Commercial Banking Corp chief economist Michael Ricafort noted that increased global oil prices and improved demand outlook dampened the local currency's appeal.