MANILA, Philippines—The peso, together with other major Asian currencies, weakened on Wednesday as the negative outlook assigned on the credit rating of Belgium renewed jitters over the debt situation of countries in the Euro zone.
Investors said concerns over the worsening debt profile of countries in the Euro area have dampened sentiment for emerging markets in general, thus affecting even Asian countries like the Philippines.
The peso closed at 43.57 against the US dollar, down by 17 centavos from the previous day’s finish of 43.40:$1.
Intraday high hit 43.42:$1, while intraday low settled at 43.60:$1. Volume of trade increased to $812.84 million from $730.93 million previously.
Traders said the negative news about Belgium worsened concerns over the debt situation in the Euro area. Fitch Ratings has just assigned a “negative” outlook on the credit rating of Belgium.
This came after Greece suffered a credit rating downgrade last Friday.