Peso closes at its weakest in nearly a year at P49.24

The Philippine Peso on Monday closed at its weakest against the US dollar in 11 months, ?49.24 vs Friday’s ?49.2, ahead of the release of the latest inflation data.

According to RCBC Chief Economist Michael Ricafort, this was also the fourth straight trading day that the peso exchange rate was weaker against the dollar.

"The US dollar lingered among the highest major global currencies the past three months after US stock markets mostly posted new record highs, with the S&P 500 at a new record high for the seventh straight trading day, and after the US created the most non-farm jobs in 10 months," explained Ricafort.

The peso was also affected after fully vaccinated persons were allowed to travel domestically, thereby improving economic recovery prospects, including some pick up in imports.

The peso also weakened as global oil prices lingered at recent 2.5-year highs, thereby increasing the country's oil import bill.

Offsetting the positive factor for the peso is the continued gains in the local stock market to new 4.5-month highs. — DVM, GMA News