Peso flat as investors weigh global economy, weak economic growth

MANILA, Philippines—The peso was unchanged in the first trading day of the week as investors assessed the potential impact of developments offshore and the Philippine economy’s slower-than-expected growth in the first three quarters of the year on the growth outlook for the country.

The local currency closed at 43.27 against the US dollar, the same as Friday’s finish.

Intraday high hit 43.26:$1, while intraday low settled at 43.35:$1. Volume of trade amounted to $798 million from $944.20 million previously.

Offshore, Italy has announced austerity measures that are aimed at helping solve the eurozone debt crisis. Traders said the austerity commitment by the Italian government has lifted the sentiment of investors, but this was offset by concerns about the Philippine economy’s slower-than-expected growth as of end-September.

The Philippine economy, measured in terms of gross domestic product, grew by 3.6 percent in the first three quarters of this year. At this rate of growth for the first three quarters, the government admitted that the full-year target of between 4.5 and 5.5 percent may no longer be achieved.

The slower-than-expected growth so far this year was blamed on anemic demand for the country’s exports as well as underspending by the national government.

Nonetheless, budget officials said public spending has accelerated in the fourth quarter, and this should help boost growth of the economy moving forward.