Peso depreciates further on budget uncertainties

The Philippine peso depreciated against the US dollar for the second consecutive trading day on Tuesday, given the continued uncertainties hounding the proposed budget for next year.

The local currency lost 6.5 centavos to close at P48.535:$1 versus Monday's finish of P48.47:$1.

A foreign exchange trader from a local bank attributed Tuesday's softening to the issues hounding the House of Representatives, which could affect the timely passage of the 2021 budget.

"Market continues to await developments on the proposed 2021 GAA (General Appropriations Act) with the special session scheduled this week," the trader said in a phone interview.

The House of Representatives earlier on Tuesday made official the election of Marinduque Representative Lord Allan Velasco as the Speaker, following a squabble with Taguig Representative Alan Peter Cayetano.

Both representatives, in a meeting with President Rodrigo Duterte, committed to pass the passage of the 2021 budget on time.

The business sector already earlier called on politicians to set aside their personal interests and prioritize the country's needs, raising concerns over the possible budget reenactment. — BM, GMA News