Peso retreats on concerns about Ompong’s inflationary impact

The Philippine peso retreated against the dollar on Thursday as Typhoon Ompong’s impact on inflation spooked investors.

The local currency shed 8.5 centavos to close at P54.075:$1 from 53.990 on Wednesday.

Union Bank of the Philippines chief economist Ruben Carlo Asuncion said the peso’s weakness was due to “inflation jitters because of Ompong’s probable impact.”

The Department of Agriculture estimated the damage incurred by the agriculture sector from Ompong reached P16.76 billion. 

The damage sustained by crops could disrupt food supply and eventually cause prices to go up.

Bargain hunting in favor of dollar, after the peso’s strength on Wednesday, contributed to the local currency’s slide, Land Bank of the Philippines market economist Guian Angelo Dumalagan said. —VDS, GMA News