Peso weakens vs dollar on balance of payment deficit

 Peso weakens vs dollar on balance of payment deficit
BW FILE PHOTO

THE PESO depreciated versus the greenback on Tuesday as the country’s balance of payment (BoP) posted a deficit.

The local unit closed at P49.95 per dollar on Tuesday, shedding two centavos from its P49.93 close on Monday, based on data from the Bankers Association of the Philippines.

The peso opened Tuesday’s session at P49.88 a dollar. Its weakest showing was at P49.965, while its intraday best was at P49.875.

Dollars exchanged increased to $916 million on Tuesday from $887.35 million on Monday.

A trader said the peso weakened versus the dollar following the BoP data released by the Bangko Sentral ng Pilipinas (BSP).

The BoP posted a $123-million deficit, a reversal of the $1.473-billion surfeit seen in November 2020, the BSP said on Monday evening. It was the smallest deficit in eight months or since the $73 million logged in March.

The peso also weakened due to concerns on the Omicron variant cases that have surged in some economies, including European nations, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber mes-sage.

British Prime Minister Boris Johnson said on Monday he would impose tighter restrictions to slow the spread of the Omicron variant if needed, according to Reuters.

Based on data from the Johns Hopkins University of Medicine, the UK tallied 92,598 new cases on Monday.

For Wednesday, Mr. Ricafort gave a forecast range of P49.82 to P49.99, while the trader expects the local unit to move within P49.90 to P50.10. — Luz Wendy Noble with Reuters