Peso retreats ahead of US economic stimulus deadline

The Philippine peso retreated against the dollar on Tuesday, as market players took caution ahead of the deadline for US lawmakers to pass an economic stimulus bill amid the COVID-19 pandemic.

The local currency lost 2 centavos to close at P48.62:$1 versus Monday's finish of P48.6:$1.

Tuesday's depreciation came as lawmakers in the United States continue to negotiate an economic stimulus package to provide relief amid the impact of the global health crisis.

"A weaker PHP came ahead of Pelosi's 48-hour deadline on the passage of the stimulus deal," a foreign exchange trader said in a phone interview.

On Saturday, US House Speaker Nancy Pelosi gave out a 48-hour deadline for lawmakers to reach an agreement on a stimulus package before the elections scheduled on November 3.

Pelosi's spokesperson, in a post on Twitter, said the speaker and Treasury Secretary Steve Mnuchin "continued to narrow their differences," as reported by Reuters.

Pelosi said she was optimistic that a measure could be finalized before the elections, and an agreement would have to come by the end of Tuesday for that to happen.—AOL, GMA News