Peso falls on news of Philippines’ modest growth

MANILA, Philippines—The peso fell on the first trading day of the week following the government’s announcement that it missed its economic growth target for 2011 and amid concerns the external environment would remain challenging in 2012.

The local currency closed at 43.075 against the US dollar on Monday, down by 22.5 centavos from Friday’s finish of 42.85:$1.

Intraday high hit 42.75:$1, while intraday low settled at 43.085:$1. Volume of trade amounted to $1.146 billion from 1.052 billion previously.

The National Statistical Coordination Board announced Monday that the economy, measured in terms of gross domestic product, grew by 3.7 percent in 2011 from a year before. This was short of the government’s official target of 4.5 to 5.5 percent.

Meanwhile, concerns about the lingering debt problems in the eurozone also dampened demand for the peso as well as for other emerging markets’ currencies.

European leaders are meeting in Brussels Tuesday to complete talks on resolving the crisis in the eurozone through deficit reduction and a bailout package of about $661 billion.

Analysts said that while the ongoing talks have indicated commitment of the eurozone policymakers to resolving the crisis, the austerity measures to be implemented would lead to very slow growth for economies in the Western region.