THE PESO dropped against the dollar on Monday. — BW FILE PHOTO
THE PESO weakened versus the greenback on Monday on cautious sentiment amid the last day of substitution or withdrawal of candidates for next year’s national elections.
The local unit ended trading at P50.19 per dollar on Monday, depreciating by 34 centavos from the P49.85 close on Friday, data from the Bankers Association of the Philippines showed.
The peso opened stronger from its previous finish at P49.81 per dollar. Its weakest showing was at P50.19, while its intraday best was at P49.77 versus the greenback.
Dollars exchanged increased to $1.156 billion on Monday from $1.067 billion on Friday.
The peso weakened due to cautious sentiment as Monday was the deadline for substitution of candidates for the 2022 national elections, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
President Rodrigo R. Duterte on Monday registered his candidacy for senator through a representative. He earlier said he would run for vice-president and retire from politics.
Meanwhile, on Saturday, Mr. Duterte’s daughter Sara Duterte-Carpio also became a substitute candidate for the vice-presidential race after she withdrew candidacy for another term as the mayor of Davao City.
On the other hand, a trader said in a Viber message that the peso depreciated versus the greenback amid the expected signing of the US bipartisan infrastructure spending bill by President Joseph R. Biden.
A $1-trillion infrastructure bill was passed by Congress earlier this month, Reuters reported. It is the largest US investment in roads, rail lines and other transportation networks in decades.
For Tuesday, Mr. Ricafort gave a forecast range of P50.10 to 50.30 versus the dollar, while the trader expects the local unit to move within P50.05 to P50.30. — L.W.T. Noble with Reuters