Peso falls on reports of less manufacturing output from China
MANILA, Philippines—The peso fell on Thursday as various unfavorable economic indicators offshore, led by estimates of lower manufacturing output in China, were seen to dampen exports earnings of emerging markets like the Philippines.
The local currency closed at 42.78 against the US dollar, down by 16 centavos from Wednesday’s finish of 42.62:$1.
Intraday high hit 42.68:$1, while intraday low settled at 42.88:$1. Volume of trade amounted to $1.26 billion from $1.156 billion previously.
The drop in the peso came amid estimates that manufacturing output in China has been shrinking and following reports that Taiwanese economy grew by only 1.89 percent in the fourth quarter of 2011, the slowest pace in more than two years.
The move of Fitch Ratings to cut the credit rating of debt-ridden Greece by two notches likewise caused market volatilities as it prompted views it might eventually default on its obligations, even as it just got a $170-billion bailout package from the European Union.
Traders say the unfavorable reports substantiate concerns that the global economy is still facing serious challenges this year.
