Home Banking & Finance Peso down vs dollar on worries over Delta variant

Peso down vs dollar on worries over Delta variant

THE PESO weakened against the dollar on Monday as investors were concerned over the Delta variant of the coronavirus. — BW FILE PHOTO

THE PESO weakened versus the greenback on Monday due to concerns over the Delta variant of the coronavirus disease 2019 (COVID-19) and following losses at the local stock market.

The local unit closed at P50.34 against the dollar, shedding 10.5 centavos from its P50.235 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso started trading at P50.42 versus the dollar on Monday. Its weakest showing was at P50.50, while its intraday best was at P50.30 against the greenback.

Dollars exchanged slipped to $810.99 million on Monday from $841.6 million on Friday.

The peso weakened after the stock market posted losses, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Stocks started the week in the red as concerns over the Delta variant dampened market sentiment.

The Philippine Stock Exchange index lost 106.63 points or 1.59% to close at 6,587.2 on Monday, while the broader all shares index declined by 53.39 points or 1.29% to 4,084.55. 

A trader said the peso’s weakness likewise reflected concerns over the spread of the Delta variant, which caused safe-haven demand for the dollar.

Local financial markets are closed on Tuesday, July 20, in observance of Eid’l Adha.

For Wednesday, Mr. Ricafort gave a forecast range of P50.20 to P50.40 per dollar, while the trader expects the peso to move around the P50.25 to P50.45 band. — LWTN