Peso seen weakening further amid COVID-19 lockdown uncertainty

The Philippine peso is expected to weaken further this week due to the ongoing impact of the coronavirus (COVID-19) and uncertainty surrounding the lockdown in Luzon.

The peso closed at P50.80 against the US dollar on Wednesday, down 1 centavo from Tuesday's close and 21.5 centavos from the last trading day before the Holy Week break.

The Bangko Sentral ng Pilipinas (BSP) rate cut contributed to the peso's decline, as it aimed to mitigate the economic effects of the pandemic.

The Monetary Board of the BSP lowered interest rates by another 50 basis points, following a similar reduction in March.

Risk-off sentiment was also influenced by China's economic contraction in the first quarter due to the outbreak.

Economist Guian Angelo Dumalagan attributed the peso's depreciation to global and local lockdowns, which heightened market caution over the economic impact of the coronavirus.