Peso retreats vs. dollar ahead of GDP release

The Philippine peso retreated against the US dollar on Monday, albeit still hovering around four-year highs, a day before the statistics bureau releases data on the first-quarter gross domestic product (GDP).

The local currency closed Monday at P47.865:$1. This is a centavo weaker than last Friday's finish of P47.855:$1, the strongest in over four years since September 22, 2016's P47.83:41.

The Philippine Statistics Authority (PSA) is scheduled to release first-quarter GDP figures on Tuesday, May 11.

The PSA earlier on Monday reported a decline in the agricultural output for the first three months of the year, mainly due to the drop in hog production due to the African swine fever (ASF).

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the economy is still likely to have contracted in the first quarter given the higher base and the latest drop in the agricultural output.

"Sentiment also weighed by softer US jobs data, which could slow down economic recovery prospects, partly due to the stimulus checks and could lead to increased US stimulus and could help ease concerns over inflation," he said in a mobile message.

Ricafort said the peso also weakened on the proposed measures to reopen the economy after the modified enhanced community quarantine (MECQ) set to end on May 14. — BM, GMA News