Quantcast
Latest Stories

Peso falls as state of world economy remains uncertain

By

AFP PHOTO/ROMEO GACAD

MANILA, Philippines—The peso fell on Wednesday as fund owners focused on the uncertainty of how the world economy would perform over the short term amid the absence of solid indicators of faster growth.

The local currency closed at 42.345 against the US dollar, down by 5 centavos from the previous day’s finish of 42.295:$1.

Intraday high hit 42.31:$1, while intraday low settled at 42.39:$1. Volume of trade amounted to $767.4 million from $705.7 million previously.

The depreciation of the peso came a day before the speech of US Federal Reserve Ben Bernanke on whether the US central bank would inject more funds into the US economy to fuel its still lackluster growth.

The decline of the local currency also came amid opinions that previous expectations for the US Fed and the European Central Bank to implement more stimulus measures could be too optimistic.

Traders said uncertainty over what policy moves would be taken by central banks of the two major economic territories pushed investors to the sidelines and dampened appetite for some peso-denominated securities.

The decline of the peso also came amid unclear signals as to how the US economy would improve or slow down over the short term. Although there were reports of a modest rise in retail or home sales, there were also reports of a rise in unemployment benefit claims.

On the domestic front, the Philippine government is expected to announce on Thursday how the Philippine economy performed in the second quarter of the year.

Traders said some investors stayed at the sidelines while waiting for the report on the second-quarter growth of the country’s gross domestic product (GDP).

The Philippine economy, measured in terms of GDP, grew by 6.4 percent in the first quarter from a year ago.

The government targets a full-year growth of 5 to 6 percent.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: business and finance , currencies , economy , Foreign Exchange , Philippine peso , US dollar



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • What Went Before: Malacañang allies alleged involvement in pork scam
  • Timeline: Napoles tell-all
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • Napoles surgery in Makati hospital successful
  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Sports

  • Mixers trim Aces; Painters repulse Bolts
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • The best flavors of summer in one bite, and more
  • Homemade yogurt, bread blended with pizza, even ramen
  • Visiting chefs from Denmark get creative with ‘ube,’ ‘ buko,’ ‘calamansi,’ mangoes
  • Salted baked potatoes
  • A first in a mall: Authentic Greek yogurt–made fresh in front of diners
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • This time, BIR goes after florists
  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • PH seeks ‘clearer assurance’ from US
  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • Marketplace