Peso dips on news of Europe’s contraction, US production fall
MANILA, Philippines — The peso fell on Thursday following the release of reports that the euro zone contracted in the first quarter and that industrial production in the United States fell in April.
The local currency closed at 41.225 against the US dollar, down by 2.5 centavos from the previous day’s finish of 41.20:$1.
Intraday high hit 41.15:$1, while intraday low settled at 41.24:$1.
Volume of trade amounted to $895.6 million from $934.6 million previously.
The depreciation of the peso came following the release of unfavorable economic indicators for two of the world’s biggest economies.
The euro zone was reported to have contracted by 0.2 percent in the first quarter of 2013 from the fourth quarter of 2012.
Moreover, industrial production in the United States fell by 0.5 percent in April from a year ago.
Market players said the discouraging data dampened hopes that the global economy would post a more substantial recovery in 2013.
Economic challenges in the United States and the Euro zone likewise are seen to somehow adversely affect performance of emerging markets like the Philippines.
The United States and Euro zone are two of the biggest export markets for Asian-made goods.
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