Peso weakens on further Delta variant cases
The peso weakened against the听dollar听Friday after the government confirmed听the听detection听in the Philippines听of more cases of听the听highly-infectious听Delta variant听of COVID-19.听
The听peso听ended at P50.235听to the听dollar,听against听its P50.22 close Thursday, according to听the Bankers Association of the Philippines’ (BAP).听
The peso opened at P50.20,听hitting a low of听P50.25. Its intraday best听was听P50.15.听
Dollar听volume was $841.6 million, down听from Thursday’s听tally of听$1.41 billion.听
Week-on-week, the peso听weakened from听its P50.08 close on July 9.听
On Friday,听health authorities reported that they听had听detected听more听local-transmission听cases听of the Delta variant,听causing the peso to retreat,听Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort听said.听
Growing concern over the resurgence of coronavirus infections in Indonesia and听elsewhere in听Southeast Asia further weighed听on听market sentiment, he said.听
The听Health听department said听it recorded听11听new听local-transmission cases out of听16 Delta variant听infections. This brought the听case count for听the highly-infectious听Delta听variant听in the Philippines听to 35.听
The听Philippines听reported 5,676 new coronavirus cases Friday,听with all active cases amounting to听48,480 so far. Deaths numbered听26,476听with the addition of听162 newly deceased.听
The Federal Reserve’s recent dovish signals also affected the peso’s movements听Friday according to Mr. Ricafort.听
The US job market 鈥渋s still a听ways听off鈥 from the progress the Fed wants to see before reducing its support for the economy, while current high听levels of听inflation will ease 鈥渋n听the听coming months,鈥 Fed Chairman Jerome Powell said Wednesday.听
Meanwhile, a trader听also听attributed the peso’s听weakness听to expectations US retail sales听will improve听in June.听鈥 Beatrice M.听Laforga听
