Peso weakens vs dollar after Q1 GDP contraction

The Philippine peso weakened against the US dollar on Thursday due to a contraction in the first-quarter GDP.

The local currency closed at P50.56 per dollar, down 10 centavos from Wednesday's close of P50.46 per dollar.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the weaker peso to lower-than-expected GDP data.

A foreign exchange trader noted that a contraction was not widely expected and full-year outlooks are likely to be revised downward.