Peso falls as doubts raised over Euro debt package

MANILA, Philippines—The peso fell on Tuesday as doubts were again raised on the ability of European leaders to resolve the debt crisis in the Euro zone sooner rather than later.

The local currency closed at 43.29 against the US dollar, down by 17.5 centavos from Monday’s finish of 43.115:$1.

Intraday high reached 43.14:$1, while intraday low settled at 43.30:$1. Volume of trade breached the $1-billion level to hit $1.005 billion from $825.65 million previously.

European leaders are about to meet on Sunday to discuss details of plans to avoid the crisis in their region from worsening. France and Germany earlier said they would extend financial assistance to help the region’s banking sectors, particularly those exposed to debt-ridden Greece, avoid collapse.

Traders said, however, that investors have realized that the crisis in the eurozone could not be resolved soon even if policymakers were able to agree on an assistance package during the meeting this weekend.

Opinions that the crisis would take time to resolve have somewhat dampened optimism in the market on Tuesday, traders said, and this has prompted some investors to liquefy assets, even those from emerging markets like the Philippines.