Peso dragged by risk aversion brought about by nCoV fears

The Philippine peso depreciated against the US dollar on Monday, as the market was risk-averse given concerns over the 2019 novel coronavirus (n-CoV).

The local currency lost 2.5 centavos to close at P50.835:$1 versus last Friday's finish of P50.815:$1.

"The peso exchange rate was slightly weaker today... amid some increase in global risk aversion largely due to continuing concerns over the spreading of the coronavirus to more countries and more deaths recorded in China," Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in a text message.

The United States Centers for Disease Control and Prevention earlier confirmed that five people in the United States, all of whom recently traveled from Wuhan, China, have been diagnosed with the new coronavirus.

"As a result, the US dollar was slightly higher vs. most global/Asian currencies, as the coronavirus may lead to slower global economic growth especially in China, which is the world's second-biggest economy," said Ricafort.

Latest reports indicate that 80 individuals have been killed by the novel coronavirus across China.

For its part, the Philippines has suspended all direct incoming flights from Wuhan following the outbreak. — RSJ, GMA News