Peso drops to nearly 44 to dollar

The Philippine peso depreciated to 43.99 to a dollar on Monday, December 19, 2011, amid concerns of sustained drop in the country's export earnings next year due to the lingering crisis in the eurozone. AFP PHOTO/TED ALJIBE

MANILA, Philippines—The peso fell on the first trading day of the week amid concerns of sustained drop in the country’s export earnings next year due to the lingering crisis in the eurozone.

The local currency closed at 43.99 against the US dollar, down by 16 centavos from Friday’s finish of 43.83:$1.

Intraday high reached 43.84:$1, while intraday low settled at 44.04:$1. Volume of trade reached $897.6 million from $704.45 million previously.

Traders said the drop in the peso was consistent with the decline in other key Asian currencies, which were dragged by the anemic global outlook on exports from emerging markets next year.

The eurozone remains to be a key export market, and the crisis in the region is feared to cause sustained declines in export revenues for emerging countries next year.

Latest forecast from the Bangko Sentral ng Pilipinas said that Philippine exports would drop by one percent this year from a year ago.

The BSP said prospects for exports may indeed be unfavorable next year should the eurozone fail to significantly ease its debt woes.