Peso extends losing streak for 3rd consecutive trading day

The Philippine peso weakened against the US dollar for the third consecutive trading day on Tuesday, as the greenback gathered strength from expectations of a dovish European Central Bank.

The local currency lost 5.9 centavos to close at P51.135:$1, from P51.076:$1 on Monday.

“The peso softened against the dollar as market participants position over a stronger dollar ahead of possible dovish cues from the European Central Bank (ECB) policy meeting this Thursday, Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said.

The ECB is seen cutting rates by 10 basis points when the bank’s  Governing Council meets on Thursday, July 25, according to Reuters.

The peso started to show weakness on Friday.

“The local currency weakened yesterday due to some safe-haven demand due to some caution ahead of the President’s State of the Nation Address (SONA),” Dumalagan said. —VDS, GMA News