Peso drops over slow jobs creation in US, manufacturing output in China

The Philippine peso closed at 43.475 against the US dollar on Monday, June 4, 2012. AFP FILE PHOTO

MANILA, Philippines—The peso depreciated on the first trading day of the week as unfavorable reports on employment situation in the United States and manufacturing output in China dampened appetite for emerging market securities.

The local currency closed at 43.475 against the US dollar on Monday, down by 7.5 centavos from Friday’s finish of 43.40:$1.

Intraday high hit 43:435:$, while intraday low settled at 43.55:$1. Volume of trade amounted to $655 million from $1.2 billion previously.

The fall of the peso, which came together with the decline in other key Asian currencies, was attributed to reports that non-farm sectors in the United States generated less-than-expected number of jobs in May and that manufacturing production in China slowed down in April.

Traders said the unfavorable reports on the United States and China, coupled with the ongoing concerns over the debt problems of the eurozone, prompted fund owners to liquefy their assets and shift to the US dollar.

They said economic problems in key export markets, such as United States and China, would drag performance of exporting countries like the Philippines.