THE PESO depreciated slightly against the greenback on Tuesday as investors await clarity on the lifting of lockdown measures and amid risk-off sentiment following new coronavirus disease 2019 (COVID-19) cases in some countries.
The local unit finished trading at P50.31 per dollar on Tuesday, depreciating by a centavo from the P50.30 close on Monday, according to data from the Bankers Association of the Philippines.
The peso opened the session at P50.38 per dollar. Its weakest showing for the day was at P50.40 while its strongest was at P50.27 against the greenback.
Dollars traded went down to $391.85 million from the $474.21 million logged on Monday.
A trader said there was cautiousness in the market as investors await clearer guidelines on the lifting of lockdown measures across the country.
“The peso weakened slightly as investors might remain cautious ahead of the expected government’s decision on quarantine policies,” the trader said in an e-mail.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort also attributed the slight weakness in the local unit to the government’s decision to extend the quarantine in major cities.
“The peso closed slightly weaker but still among its strongest in more than two years, after Metro Manila was placed at modified ECQ (enhanced community quarantine) together with Cebu and Laguna,” Mr. Ricafort said via text. “Peso was also slightly weaker amid some profit-taking in some stock markets worldwide amid new COVID-19 cases infections in South Korea.”
For today, the trader gave a forecast range of P50.40 to P50.50 while Mr. Ricafort expects the local unit to trade within the P50.20 to P50.45 band. — LWTN