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Peso weaker on dollar safe-haven plays after Trump tests positive for COVID-19

peso weaker on dollar safe haven plays after trump tests positive for covid 19 - Peso weaker on dollar safe-haven plays after Trump tests positive for COVID-19

The peso weakened Friday as investors sought a safe haven in the dollar after US President Donald J. Trump tested positive for coronavirus disease 2019 (COVID).

The peso closed at P48.48 against the dollar, compared with its P48.43 finish Thursday.

The peso opened the session at P48.42, its intraday high. The low was P48.50.

Dollar volume rose to $814.9 million from $807.6 million the previous day.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message that the peso weskened on safe-haven moves into the dollar after Mr. Trump tested positive for the coronavirus.

“The peso was weaker after US President Trump tested positive for COVID-19, weighing on sentiment on the global financial markets, including the peso, and also causing a healthy upward correction in the dollar as a safe haven," Mr. Ricafort said.

Bloomberg reported that the test result follows a positive test for White House senior adviser Hope Hicks.

US stock markets fell following Mr. Trump’s test result. The Dow Jones Industrial Average dropped 1.56% while the S&P 500 fell 1.54%. The Nasdaq Composite was down 1.78%.

A trader who asked not to be identified said in an e-mail that investors were also worried about the absence of a resolution on a further round of US stimulus spending.

Mr. Ricafort expects the peso to trade between P48.45 and P48.60 Monday, while the trader puts the range at P48.40 to P48.55. — Kathryn Kristina T. Jose

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