Peso dragged down by eurozone debt issues

MANILA, Philippines—The peso fell on the first trading day after Christmas amid persistent concerns over the prolonged crisis in the eurozone.

The local currency closed at 43.58 against the US dollar on Monday, down by 11 centavos from the previous finish of 43.47:$1.

Intraday high hit 43.49:$1, while intraday low settled at 43.58:$1. Volume of trade amounted to $485.5 million from $678.15 million previously.

The drop in the peso came following a statement from a European Central Bank official that the monetary authority would not serve as lender of last resort to highly indebted sovereign governments in the eurozone.

There is a consensus among economists that the debt crisis in the eurozone will persist, if not worsen, in 2012. Given this, emerging markets are expected to be affected as well.

This is because the eurozone serves as one of the biggest export markets for many emerging economies. It is also a source of foreign investments and official development assistance.