Peso falls as agreement on Euro debt hangs

MANILA, Philippines—The peso fell together with other emerging market currencies amid speculations European leaders would not be able to agree on Wednesday on a package of reforms needed to address the eurozone debt crisis.

While the meeting of heads of states in the eurozone was to push through as scheduled, the meeting of finance ministers was reportedly canceled as the finance officials were still unsure of how to recapitalize ailing banks.

The European leaders were expected to announce on Wednesday a set of measures to squarely address the crisis. Financial markets worldwide were waiting for the said announcement, but traders said concerns that no agreement might be agreed upon somewhat caused jitters.

The peso closed at 43.205 against the US dollar, down by 7.5 centavos from Tuesday’s finish of 43.13:$1.

Intraday high reached 43.19:$1, while intraday low settled at 43.25:$1. Volume of trade amounted to $747.79 million from $986.69 million previously.

Traders said market concerns over whether the EU Summit would be a success or not prompted some investors to liquefy assets purchased from emerging economies, thus causing a decline in emerging market currencies like the peso.