Peso retreats after release of US economic data

The Philippine peso retreated against the dollar on Monday, following the release of economic data in the United States.

The local currency lost a centavo to close at P48.075:$1 versus last Friday's finish of P48.065.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said Monday's performance came as the US dollar corrected against major currencies.

"The peso exchange rate slightly weaker... as the US dollar vs. major global currencies corrected to new one-month highs lately after softer US economic data on retail sales and consumer sentiment, after softer jobless claims data that suggest slower economic recovery," he said in a mobile message.

"Global market sentiment also adversely affected after 29 elderly deaths in Norway allegedly in COVID-19 vaccination, thereby partly leading to some health correction in US/global stock markets to near one-weak lows but still near record highs," he added.

The Norwegian Medicines Agency (NOMA) said it is now looking into the deaths, but said vaccinations will continue with extra evaluation for the sick and elderly.

Meanwhile, the vaccine manufacturer Pfizer-BioNTech said it is working with NOMA to look further into the matter.

Ricafort said the peso also weakened after global crude oil prices hovered near 11-month highs recently, possibly leading to higher oil import bills and higher demand for US dollars to pay for oil imports.—AOL, GMA News