Peso weakens further to P51:$1 level over NRC quarantine concerns

The Philippine peso depreciated further against the greenback on Friday as concerns over the impact of the community quarantine placed in Metro Manila dragged the local unit.

The local currency shed 18 centavos to close at P51:03:$1 from Thursday’s finish at P50.85:$1.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the

weaker peso also “came a few hours after the announcement of the community quarantine of Metro Manila vs. the coronavirus (COVID-19) as this could lead to slower economic growth and some stockpiling by households of food and other basic commodities could lead to some pick up in prices/inflation...”

On Thursday night, President Rodrigo Duterte addressed the nation that the Philippine government is restricting travel to and from Metro Manila starting March 15 until April 14 as part of community quarantine in a bid to contain the spread of coronavirus disease 2019 (COVID-19).

“Major lead/catalyst next week is the next monetary policy-setting meeting of the BSP (Bangko Sentral ng Pilipinas) on March 19, 2020, when there is a possible cut in local policy rates of at least -0.25,” Ricafort said.

“Peso exchange rate could also be affected by latest developments on coronavirus as well as any further government measures vs. the coronavirus,” he said. —LDF, GMA News