Peso sheds off value vs dollar over gloomy outlook on global economy

MANILA, Philippines—The peso closed with less value on Tuesday, moving back to the 43-to-a-dollar territory amid the dampened outlook of portfolio fund owners on the global economy.

The local currency closed at 43.145 against the US dollar, down by 22.5 centavos from 42.92:$1 on Friday. Market was closed on Monday, which was declared an official holiday.

Intraday high hit 42.95:$1, while intraday low settled at 43.15:$1. Volume of trade amounted to $800.08 million from $1.179 billion previously.

The peso moved with other emerging Asian currencies, which were dampened by heightened risk aversion brought about concerns on the eurozone and anemic export prospects for Asian countries.

In Italy, which is also facing a serious debt problem, a budget vote was scheduled on Tuesday that would determine whether austerity measures proposed to address its debt woes would be implemented.

Traders said foreign fund investors were staying on the sidelines while waiting for developments in eurozone countries, particularly Italy and Greece.

They also said the US and eurozone economies would remain anemic, dampening export earnings of emerging markets like the Philippines.

Read more...