Peso slides on eurozone, China concerns

AFP FILE PHOTO

MANILA, Philippines—The peso fell on Wednesday over renewed concerns over the deepening debt crisis of the eurozone and projections of a further slowdown of China.

The local currency closed at 42.185 against the US dollar, down by 14 centavos from the previous day’s finish of 42.045:$1.

Intraday high hit 42.085:$1, while intraday low settled at 42.25:$1. Volume of trade amounted to $993.6 million from $927.41 million previously.

The depreciation of the peso, which came with the decline of other key Asian currencies against the greenback, came about as worries escalated that the debt crisis in the eurozone has been worsening. There are fears Greece might default on its maturing obligations as it is having difficulty meeting the austerity measures being required by the International Monetary Fund for a bailout.

Moreover, there are projections China will slow down further given the ill-effects of the global economic problem on its economy.

Both China and Europe are key export markets for many emerging economies like the Philippines. China and Europe also serve as key sources of foreign direct investments.