Peso falls over doubts US economy can make short-term rebound

AFP FILE PHOTO

MANILA, Philippines — The peso fell on Thursday amid uncertainties over the ability of the United States to significantly boost its economy over the short term.

The local currency closed at 41.12 against the US dollar, down by 5 centavos from the previous day’s finish of 41.07:$1.

Intraday high hit 40.94:$1, while intraday low settled at 41.12:$1.

Volume of trade amounted to $836.6 million from $1.148 billion previously.

The fall of the peso came following release of reports on the latest minutes of the meeting of the US Federal Reserve. Reports said US Fed officials still did not see solid signs that the world’s biggest economy could post a significant recovery in 2013 after having posted lackluster growth from its 2009 recession.

The United States is one of the biggest markets for goods exported by emerging markets like the Philippines. It is also home to many overseas Filipino workers, whose remittances help boost household consumption in the Philippines.

Traders said developments in the United States have been significantly affecting sentiment on emerging markets like the Philippines and the global economy.