Peso falls anew as Euro debt problems persist

MANILA, Philippines—The peso fell again on Thursday, partially wiping out the gains registered the previous day, over renewed concerns on the debt situation in the eurozone.

The local currency closed at 43.63 against the US dollar, down by 18 centavos from Wednesday’s 43.45:$1.

Intraday high reached 43.57:$1, while intraday low settled at 43.71:$1. Volume of trade rose to $958.61 million from $774.77 million previously.

German authorities were about to vote on Thursday on whether to purchase more bonds from its debt-ridden neighbors in the eurozone to help avoid a contagion of the debt crisis. Traders said the long-standing problem has been making investors somewhat frustrated over the time it has been taking to resolve the crisis.

According to traders, as long as the crisis persists, sentiment of foreign investors would continue to be volatile.

Some fund owners expect the eurozone debt crisis to drag on, thus eventually dampening even the performance of emerging markets in Asia, including the Philippines. In an environment of global uncertainty, traders said investors would pull out their securities investments, even from emerging markets, and hold on to their dollars.