Peso slightly up

Peso closed at 42.39 against the US dollar on Thursday, May 10, 2012. AFP PHOTO

MANILA, Philippines—The peso moved sideways on Thursday as capital markets worldwide monitored political developments in Greece that were feared to affect the eurozone’s efforts to solve its debt woes.

The local currency closed at 42.39 against the US dollar, up by 2 centavos from the previous day’s finish of 42.41:$1.

Intraday high hit 42.38:$1, while intraday low settled at 42.53:$1. Volume of trade amounted to $964.71 million from $1.096 billion previously.

The biggest political party in Greece has failed to form a coalition, increasing the chances of another round of elections in June. Observers say the rival, left-leaning party now has the chance of leading the Greek government and this raises the possibility that the country might abandon austerity measures it is being asked to observe to address its debt problems.

Observance of austerity measures is one of the requirements of the International Monetary Fund to provide another round of bailout for Greece.

Traders said some investors have been on a wait-and-see mode, taking into account the adverse effects on emerging Asian economies of a worsening of the eurozone crisis.

The euro zone is a key export market for goods produced by the Philippines and other emerging Asian countries.