MANILA – The Philippine peso is projected to continue its sideways movement against the greenback this week along with the main stocks gauge as investors continue to worry, among others, about the impact of coronavirus disease (Covid-19).
The local currency ended last week at 50.72 to a US dollar and BDO chief strategist Jonathan Ravelas forecasts it to range between 50.70 and 51.00 Monday.
In a reply to questions from the Philippine News Agency, he noted that the peso strengthened by 0.55 percent week-on-week last week “after the government and central bank unveiled steps to support the domestic economy amid the coronavirus pandemic.”
“Only a sustained break above the 51.30 will signal another attempt towards 51.50/51.85 level,” he added.
Relatively, the Philippine Stock Exchange index (PSEi) is seen to range between 4,800-5,500 level this week after recovering to 5,346.97 points on Friday.
“The number of cases, whether an increase or a decrease could have an influence on sentiment and, hence, to the local stock market,” Regina Capital Managing Director Luis Limlingan said.
As of 9:38 a.m. Monday, the main index has risen by 0.83 percent, or 44.10 points, to 5,391.07 points.
All the other counters are trading with gains.
The Department of Health reported that as of Sunday, the total number of confirmed Covid-19 cases in the country has reached 3,246, with 64 recoveries and 152 deaths. (PNA)
