Peso falls amid Greece fears

MANILA, Philippines—The peso fell on the first trading day of the week amid ongoing uncertainties in the eurozone led by speculations that Greece might eventually exit from the group.

The local currencies closed at 42.705 against the US dollar on Monday, down by 13.5 centavos from Friday’s finish of 42.57:$1.

Intraday high hit 42.55:$1, while intraday low settled at 42.71:$1. Volume of trade amounted to $697.49 million from $1.1 billion previously.

The decline of the peso and other key Asian currencies came amid concerns that resolution of the debt woes of the eurozone remains difficult, especially since Greece is on the verge of having a new government that makes it uncertain whether the country can fulfill previously agreed measures, including unpopular austerity initiatives, to help it solve its debt woes.

Speculations that Greece may eventually exit from the eurozone are also causing uncertainty as to the impact on the country’s ability to meet its obligations to creditors.

Traders said the lingering problems in the eurozone has been dampening appetite for portfolio assets, including those from emerging markets like the Philippines, and has been prompting fund owners to hold on to the US dollar.

Amid this backdrop, the Philippine Stock Exchange Index fell by 74.52 points to 5,083.62.