Peso Slips on Renewed Brexit Fears

The peso weakened against the greenback for the second straight day on Wednesday, as investors head for the safe haven dollar on renewed concerns about the impact of Britain’s withdrawal from the European Union (EU).

The local currency shed 4 centavos to close at P48.285:$1 from 48.245 on Tuesday.

“The Philippine peso continued to depreciate today on investors’ preference of the US dollar amid Brexit worries,” Cherica Vicente, research analyst at MetisEtrade, said in an emailed commentary.

“Concerns regarding the possible negative impact of Brexit were reignited, as negotiations between Britain and the EU take place,” Vicente added.

This uncertainty influenced the market to seek the security of the US dollar.

“Investors usually flock to safe haven assets like the US dollar in times of uncertainties, rather than investing in riskier assets of emerging market economies,” she said. — Ted Cordero/VDS, GMA News

(Source: GMAnetwork.com)