Peso retreats as NCR Plus shifts to GCQ

The Philippine peso retreated against the US dollar on Monday, following the easing of quarantine restrictions.

The local currency lost 4.5 centavos to close at P47.855:$1 versus last Friday's finish of P47.81.

Monday was the first working day that the restrictions in NCR Plus bubble were eased to general community quarantine (GCQ), albeit heightened.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said Monday's depreciation comes as the easing of restrictions could lead to a further reopening of the economy.

This would then lead to faster economic recovery prospects and better recovery in imports.

"Peso also slightly weaker after the higher global oil prices recently among 16-month highs, which could increase the country's oil import bill," Ricafort said in a mobile message.

Other factors that affected Monday's session are the relatively lower COVID-19 cases, and the performance of the local equities market. — BM, GMA News