Peso retreats as COVID-19 cases continue to climb

The Philippine peso retreated against the US dollar on Monday, following the increase in confirmed cases of the coronavirus disease 2019 (COVID-19) across the globe.

The local currency lost 8 centavos to close at P50.14:$1 versus last Friday's finish of P50.06:$1.

According to Land Bank of the Philippines chief economist Guian Angelo Dumalagan, there was more demand for the safe-haven dollar following the climb in global COVID-19 cases.

"The peso weakened from dollar safe-haven demand following the notable increase in COVID-19 cases and closure of some retail outlets in some US states," he said in an email interview.

"Similar second wave contagion worries around the world have also dimmed market sentiment today," he added.

The World Health Organization (WHO) over the weekend reported a record increase in global coronavirus cases, a record of over 183,000 cases in a 24-hour period.

Locally, there have been a total of 30,052 confirmed cases of COVID-19 in the Philippines as of Sunday, June 21, 2020. This includes 7,893 recoveries and 1,169 deaths.

Moving forward, Dumalagan said the dollar is expected to shed some of its gains by midweek, as risk appetite is likely to improve.

"Towards the end of the week, the greenback might move sideways amid dovish guidance from the BSP and bets of weak US economic growth in the first quarter of 2020," he said.

The Monetary Board of the Bangko Sentral ng Pilipinas is scheduled to meet on Thursday, June 25, to discuss whether or not a change in monetary policy settings is warranted given the current conditions. --KBK, GMA News