Peso dragged down anew by Euro zone debt crisis

MANILA, Philippines—The peso again fell on Tuesday as the lingering concerns on the debt crisis in the Euro zone dampened appetite for emerging-market currencies.

The local currency closed at 42.975 against the US dollar on Tuesday, down by 16 centavos from the previous day’s finish of 42.815:$1.

Intraday high hit 42.71:$1, while intraday low settled at 42.99:$1. Volume of trade amounted to $775.80 million, down from $921.7 million previously.

Traders said concerns over a potential contagion of the debt crisis of Greece in the entire Euro zone have preoccupied the minds of portfolio investors, prompting them to pull out funds from emerging markets and hold on to US dollars for safety.

Consequently, currencies of emerging markets, such as the Philippines, fell, traders said.

Business sectors of neighboring countries, such as the banking sector of Germany, have exposure to the debt problem of Greece through bond purchases, according to traders. Should Greece default, traders said, investors would take a hit.