Peso posts slight gains vs. dollar

The Philippine peso appreciated back to the P50:$1 level on Monday, as corporate inflows offset foreign selling in the local equities market.

The local currency gained 4 centavos to close at P50.96:$1 from last Friday's finish of P51:$1.

In an email interview, ING Bank Manila senior economic Nicholas Mapa said that while the peso posted slight gains against the greenback, the overall picture still remains downcast given the spread of the coronavirus disease 2019 (COVID-19).

"Trading volume was relatively light today, even for a shortened trading session so we won’t put too much into the Peso’s slight appreciation for the session as the overall mood remains subdued due to the ongoing virus outbreak," he explained.

"Weakening pressure was noted as foreigners continued to sell in the PSE which was offset by corporate inflows," added Mapa.

According to data from the Philippine Stock Exchange (PSE), foreign funds bought P2.381 billion of shares during Monday's session and sold P3.268 billion for a net selling position of P887.396 million.

At the same time, Mapa warned of the economic fallout given the spread of the COVID-19 across the globe.

"Once we’re done battling Covid-19, we will be in a long drawn out fight with the economic fallout from the virus. As the Governor of BSP noted, the impact will be drawn out and deep so sentiment may be subdued for some time," he said. — RSJ, GMA News