MANILA, Philippines—The peso fell slightly on Thursday amid speculations that manufacturing output in China may have contracted for the fifth consecutive month in March, thereby dampening exports growth prospects for exporting countries like the Philippines.
The local currency closed at 43.06 against the US dollar, down by 2 centavos from the previous day’s finish of 43.04:$1.
Intraday high hit 42.97:$1, while intraday low settled at 43.14:$1. Volume of trade amounted to $980.52 million from $1.10 billion previously.
The decline of the peso came together with estimates by economists that volume of production by the Chinese manufacturing sector, official data on which shall be released in a few days, may have dropped again in March.
Traders said falling manufacturing output in China substantiated concerns that the world’s second-biggest economy would be on a slowdown this year. Investors think this could dampen export earnings of countries like the Philippines, according to traders.
China is one of the biggest export markets for Philippine-made goods.