Fear of peso virus, March ‘Hot Money’ net outflow

PESO weakens against Greenback on Thursday after news of a case detection of a new sub-variant of coronavirus disease 2019 in the country and data showing a net “hot money”flOh last month.

The local unit closed at P52.27 per dollar on Thursday, down 15 cents from Wednesday’s P52.12 finish, according to data from the Bankers Association of the Philippines.

The peso opened Thursday’s session at P52.15 against the dollar. Its weakest performance was at P52.36, whereas its intraday best was P51.96 vs. Greenback.

The dollar exchange rate fell to $ 1.597 billion on Thursday from $ 1.654 billion on Wednesday.

The peso has been devalued in the news of the identification fiThe first case of Omicron sub-variant (BA.2.12) in the country, Rizal Commercial Banking Corp. Its chief economist Michael L. Ricafort said in a Viber message.

The virus was detected in a woman from Finland earlier this month, the health department said late Wednesday. The patient, who was completely vaccinated and asymptomatic, went to Baguio City to conduct the seminar.

The US Centers for Disease Control has previously blamed sub-variants for the growing transition to the world’s largest economy.

The net hot money outflow recorded last month also created a risk-free attitude, Mr Ricafort added.

Foreign portfolio investment is a net out postflমার্চ 305.08 million owed in March, the central bank reported on Thursday. That’s 43.6% less than the 40 540.97-million net outflow a year ago but against $ 274.04-million netflSeen in February.

Last month’s net outflow the biggest in eight months or since 20 339.7 million since July 2021. Analysts have blamed the net outflRussia has expressed concern over the war as well as the uncertainty ahead of the May 9 national elections.

Meanwhile, a trader in a Viber message said, “Peso has been devalued due to bargaining after the currency break.fly reached below P52 level intraday. “

For Friday, both Mr. Ricafort and the trader forecast P52.15 to P52.35 per dollar. – Loose Wendy T. Nobel