Peso sinks on latest US-China tensions

The Philippine peso depreciated against its US counterpart on Monday, dragged by renewed tensions between the world's biggest economies.

The local currency lost 4 centavos to close at P48.08:$1 versus last Friday's finish of P48.04:$1.

Monday's depreciation came after tensions between China and the United States, as well as the weak American payrolls data released last week.

"The peso exchange rate slightly weaker today vs. the US dollar after latest US-China tensions, particularly on US sanctions on some Chinese officials on Hong Kong," Michael Ricafort, chief economist at the Rizal Commercial Banking Corporation (RCBC), said in a mobile message.

"Peso also slightly weaker after the slight upward correction in the US dollar vs. major global currencies from new 2.5-year lows after the softer US jobs/employment data that could encourage US stimulus package," he added.

The US economy, as reported by Reuters, added the fewest workers in six months in November, as nonfarm payrolls increased by 245,000 versus expectations of 469,000.

"Global oil prices at new nine-month highs recently also partly led to slightly weaker peso as this leads to higher oil import bill," said Ricafort.

The economist likewise noted the increase in confirmed cases of COVID-19 in the country, which partly weighed on the peso, after 1,574 new cases were reported on Monday to bring the total tally to 441,399. — BM, GMA News