Peso firms up despite nCoV concerns

The Philippine peso managed to close stronger against the US dollar on Friday despite concerns on the novel coronavirus which tempered trading activities.

The local currency gained 13 centavos to close at P50.83:$1 from 50.96 on Thursday.

“The peso closed stronger today at 50.83, but still among the weakest in three weeks, from yesterday's 50.96, despite reports about the first case of the novel coronavirus in the country as announced yesterday,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

“The peso is also among the strongest in two years,” Ricafort said.

The death toll in China ballooned to 213 on Friday morning while almost 10,000 have been infected as the virus spreads to 18 other countries.

The World Health Organization already declared the outbreak as a global health emergency.

In the Philippines, the Department of Health confirmed the first case of novel coronavirus in the country on Thursday.

Meanwhile, 56 suspected cases of novel coronavirus were recorded a few hours before Friday noon, almost double than the previous day's record of 29.

“Stronger peso may be partly brought about by the signals yesterday by the BSP and the Department of Finance about the possibility of monetary easing, in view of the upcoming monetary policy-setting meeting on February 6, 2020, a day after the February 5 announcement of the inflation data,” Ricafort said.

“There were also some claims that about more patients of the latest coronavirus being cured, thereby with relatively lower mortality rate than earlier feared,” he said. — RSJ, GMA News