The peso weakened against the dollar following the release of dismal trade data in May, reflectng the shutdown of economic activity during the lockdown.

The peso closed at P49.485 to the dollar, against its P49.41 finish Thursday, according to data from the Bankers Association of the Philippines.

Week-on-week, the peso appreciated from its P49.55 close on July 3.

The peso opened at P49.50, hitting a low of P49.52 and a high of P49.45.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said currency weakened Friday following the release of trade data for May.

“The peso closed weaker today versus the dollar after the trade deficit/net imports data (were released),” he said in a text message.

In May, merchandise exports fell 35.6% year-on-year to $3.99 billion, according to preliminary data from the Philippine Statistics Authority. Meanwhile, merchandise imports declined 40.6% to $5.85 billion.

The trade deficit narrowed 48.9% to $1.865 billion.

A trader said the peso also weakened ahead of expected US data.

“The peso weakened ahead of a likely recovery in US producer price inflation reports to be released Friday night,” he said in an e-mail.

The US will report the June producer price index for final demand on July 11.

In May, the index rebounded 0.4% after slipping 1.3% in April, which was its biggest decrease since the series was revamped in December 2009, according to Reuters. — Luz Wendy T. Noble

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