Peso appreciates as restrictions dampen import prospects

The Philippine peso continued to appreciate against the US dollar on Monday, as the latest quarantine restrictions dampened import prospects moving forward.

The local currency gained 4 centavos to close at P48.58:$1 versus last Friday's finish of P48.62:$1.

Monday was the first day that the government implemented stricter quarantine measures in Metro Manila, Bulacan, Cavite, Laguna, and Rizal. Non-essential travel to and from the bubble has been suspended

"Tighter restrictions for the next two weeks could slow down economic recovery and result to slower pick up in imports as well, though not technically a lockdown, as recent measures to further reopen the economy in recent weeks were recalled/taken back," Miachael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in a mobile message.

"The resulting reduction in the capacity and scale of some affected business and industries, somewhat reverting back to levels a few weeks ago, would slow down the pace of economic recovery, as well as the demand for imports and the demand for US dollars to pay for imports," he explained.

Ricafort likewise noted the latest rise in new COVID-19 cases across the country, which would result in reduced consumer spending and a slower pic up in economic and business activities, which would effectively slow down the recovery in imports.

The Philippines reported 8,019 new confirmed COVID-19 cases, the highest daily tally to date. This brought the total to 671,792 which includes 80,970 active cases; 577,850 recoveries; and 12,972 deaths. — RSJ, GMA News