Peso sheds off value as investors avoid risks due to Euro debt issues

By: Michelle V. Remo, May 23rd, 2011 07:11 PM

MANILA, Philippines—The peso closed even weaker on the first trading day of the week as investors once more manifested risk aversion to assets from emerging economies due to lingering concerns over the debt crisis in the Euro zone.

The local currency closed at 43.43 against the US dollar on Monday, down by 31 centavos from Friday’s finish of 43.12:$1.

Intraday high stood at 43.205:$1, while intraday low settled at 43.44:$1. Volume of trade inched up to $867.43 million from $495.08 million previously.

Traders said some investors decided to give up investments in emerging market assets in favor of the US dollar, adding fund owners wanted to temporarily fly to “safety” as a positive outcome of the debt problem in the West has not been seen.

Last Friday, Greece suffered a two-notch downgrade of its credit rating by Fitch, which cited the country’s serious debt woes.

Traders said the problems in the Euro zone have been adversely affecting sentiment even on emerging markets in Asia, including the Philippines.

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