Peso weakens on lower fiscal deficit as of end-July

The Philippine peso depreciated against the dollar on Friday after narrower government budget deficit data weighed on the local unit.

The local currency shed 1.5 centavos to close at P52.27:$1 from 52.255 on Thursday.

"The peso closed weaker today at 52.27 vs. yesterday’s 51.255 after the latest budget deficit data, though reflecting some improvements in fiscal performance, still reflected slower growth in government spending that has dragged economic growth since the start of 2019," Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

The national government's budget deficit narrowed by 57.79 percent in the first seven months of the year as revenue growth outpaced expenditures, the Bureau of the Treasury (BTr) reported.

The fiscal deficit reached P117.9 billion in January to July, lower by P161.5 billion from P279.4 billion recorded last year as higher government revenue compared with slower expenditures helped narrow the fiscal gap. — DVM, GMA News