The Philippine peso dipped against the US dollar at the end of the trading week after the Trump administration unveiled its tax plan.
“The local currency weakened . . . for the second straight week as the greenback rallied anew after the White House unveiled Trump administration’s bid for the ‘Biggest Tax Cut’ in US history, but left unanswered questions about whether the plan would be paid for, or how,” Jonathan Ravelas, chief market strategist at Banco de Oro Unibank Inc., said.
The local currency weakened by 17 centavos to close at P49.95:$1 on Thursday from P49.78 on Wednesday.
Agence France-Presse reported the Trump administration Wednesday (Thursday in Manila) unveiled plans to dramatically cut taxes for US businesses and individuals, slashing the corporate rate to 15 percent.
The plan’s signature reform would be a dramatic reduction of the corporate tax rate, from 35 percent to 15 percent. Tax brackets for individuals would be compressed from seven to just three—10 percent, 25 percent and 35 percent lower than the current rate of 39.6 percent.
“The week’s close at 49.95 highlights strong support has emerged at the 49.40 levels. A break above the 50.00 levels could retest the 50.40 levels. Failure to clear the 50.00 levels will continue to support further consolidation within the 49.70/50.00 levels,” Ravelas said.
The Philippine Dealing and Exchange Corp. advised traders that foreign exchange trading is suspended today, Friday, with school and offices suspended in Metro Manila to give way to activities related to the 30th Association of Southeast Asian Nations Summit.