Peso slides on lower Q1 GDP

The Philippine peso weakened early Thursday as lower-than-expected first quarter gross domestic product data weighed on the local currency.

It opened lower by 8 centavos at P49.840:$1 from Wednesday's close of 49.760. It reached a low of 49.900 and a high of 49.820.

"The dollar appreciated because of it. Essentially, the peso's decline was a reversal of its prior gain, which was due to initial expectations of strong GDP growth in the first quarter," Land Bank of the Philippines market economist Guian Angelo Dumalagan told GMA News Online.

BDO Unibank Inc. chief market strategist Jonathan Ravelas said the peso's initial softening was also due to Wall Street's tumble overnight.

"The USD/PhP opened weaker reaction to Wall Street's fall," Ravelas said. — VDS, GMA News