Peso slips on ECQ extension

The Philippine peso slipped against the U.S. dollar on Monday, dragged by the extension of the enhanced community quarantine (ECQ) in Metro Manila and nearby provinces.

The local currency lost 10.5 centavos to close at P48.635:$1 versus last Wednesday's finish of P48.53:$1.

"The peso exchange rate weaker vs. the US dollar today... after the one-week extension of the ECQ at NCR Plus until April 11, 2021 in response to new record-high COVID-19 cases on a daily basis recently," Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in a mobile message.

The country reimposed the ECQ, the strictest possible restrictions, in the NCR Plus Bubble from March 29. This was initially scheduled to last in Metro Manila, Cavite, Laguna, Rizal, and Bulacan until April 4, but was extended for at least another week to April 11.

Ricafort noted, however, that the ECQ could slow down demand for imports moving forward.

"Another positive factor is the latest gains in the local stock market despite the latest one-week ECQ extension at NCR Plus which was already priced in by the markets before the Easter break," he said.

The local stock barometer gained 52.06 points or 0.81% to 6,495.15 while the broader All Shares index grew 23.17 points or 0.59% to 3,947.46.—AOL, GMA News