Peso falls on reports of weak growth in US factory orders

MANILA, Philippines—The peso closed weaker on Thursday as data showing less-than-expected factory orders in the United States dampened risk appetite of investors.

The local currency closed at 42.965 against the US dollar, down by 30 centavos from the previous day’s finish of 42.935:$1.

Intraday high hit 42.96:$1, while intraday low settled at 43.04:$1. Volume of trade amounted to $629.21 million from $697.72 million previously.

The decline of the peso came following the release of a report that orders for durable goods placed with US factories rose by 2.2 percent in February from a year ago, falling below most projections.

Traders said the data indicated that the US economy would remain in a fragile situation even after bouncing back from a recession in 2009.

The United States is a key export market for many countries like the Philippines, and so the performance of the world’s biggest economy affects the global economic outlook of investors, traders say.

They said that although Asian countries have been seen to continue driving global economic growth, the performance of the US economy would somehow appetite of fund owners for perceivably risky assets from emerging markets like the Philippines.