Peso, Asian currencies dragged down by lingering Euro debt issues

MANILA, Philippines – The peso moved with other major Asian currencies in declining on the first trading day of the week amid more concerns raised over the debt situation of some countries in the Euro zone.

The local currency closed at 43.04 against the US dollar on Monday, down by 10 centavos from Friday’s finish of 42.94:$1.

Intraday high reached 43:$1, while intraday low settled at 43.095:$1. Volume of trade inched up to $845.82 million from $654.72 million previously.

The depreciation of some Asian currencies, including the peso, came following reports released Friday saying that a number of European banks either failed or barely passed stress tests. These tests are aimed at determining the capability of banks to survive any potential risk should it materialize.

Analysts said unfavorable results of the stress tests on European banks should pressure them to put up more capital to improve their performance and credit standing.

The challenges faced by European banks combine with the mounting debts of countries led by Greece.

Traders said the uncertainty in the global economic climate has prompted some foreign portfolio investors to shy away from emerging-market assets and stay in the US dollar or dollar-denominated assets, which have always been considered more liquid.