Peso closed at 43.50 against the dollar on Wednesday, May 30, 2012, down by 28 centavos from Tuesday. AFP FILE PHOTO
MANILA, Philippines—The peso fell on Wednesday as the euphoria over the improved credit outlook of the Philippines waned amid pressing concerns over the debt crisis in the eurozone.
The local currency closed at 43.50 against the US dollar, down by 28 centavos from the previous day’s finish of 43.22:$1.
Intraday high hit 43.34:$1, while intraday low settled at 43.56:$1. Volume of trade amounted to $1.032 billion from $878.74 million previously.
The drop of the peso and other emerging market currencies came following reports that the credit rating of Spain was downgraded by Egan-Jones Ratings Co. amid an unfavorable economic outlook.
Traders said the probability of a prolonged eurozone debt crisis has made investors averse to perceivably risky assets, such as those denominated in emerging-market currencies like the peso.
The fact that European banks have remained problematic has also been a source of concern for fund owners, traders said.