Peso softens on profit-taking ahead of February inflation data release

The Philippine peso depreciated against its US counterpart on Monday, as investors chose to cash in on gains from the greenback's recent strength.

The local currency lost 2 centavos as it closed Monday at P51.72:$1 versus last Friday's P51.7:$1.

"One might have expected an appreciation because of positive news from the trade negotiations between China and the US," Ruben Carlo Asuncion, chief economist at the Union Bank of the Philippines, said in an email interview.

"However, it seems that investors might have taken profit or have factored in the slower pace of inflation decline from market analysts consensus," he added.

The Philippine Statistics Authority (PSA) is scheduled to release February 2019 inflation figures on Tuesday, March 5.

The Bangko Sentral ng Pilipinas (BSP) last week said inflation is likely to settle within 3.7 to 4.5 percent in February.

"Note that inflation median estimate is 4.1 percent for February from the actual of January at 4.4 percent. December 2018 was 5.1 percent, while November was 6.0 percent," explained Asuncion. — BM, GMA News