Peso retreats on second-wave COVID-19 contagion fears

The Philippine peso retreated against the US dollar on Tuesday, following fears of a second-wave contagion of the coronavirus disease 2019 (COVID-19).

The local currency lost 9.5 centavos to close at P48.46:$1 versus Monday's finish of P48.365:$1.

According to Land Bank of the Philippines chief economist Guian Angelo Dumalagan, Tuesday's depreciation came due to safe-haven demand.

"The peso depreciated from safe-haven demand amid renewed second wave contagion fears and US political uncertainty ahead of the upcoming November elections," he said in an email exchange.

According to a report by Reuters, new pandemic measures in the United Kingdom set off declines select companies in both the European and US markets, spurring fears over further restrictions.

The same report noted that the death of US Supreme Court Justice Ruth Bader Ginsburg appeared to make the passage of another stimulus package in Congress less likely before the presidential election on November 3.

Locally, the Philippines has so far recorded a total of 291,789 confirmed cases of the coronavirus disease 2019. This includes 230,643 recoveries and 5,049 deaths.

"Towards the end of the week, the dollar may gradually erase its initial gains, as investors react to potentially weaker US economic data on services and manufacturing," said Dumalagan.—AOL, GMA News