Peso falls over reports of decline in US manufacturing

AFP PHOTO/ROMEO GACAD

MANILA, Philippines—The peso fell on Wednesday as a report showing a decline in US manufacturing activity dampened appetite for emerging market assets.

The local currency closed at 41.975 against the US dollar, down by 7 centavos from the previous day’s finish of 41.905:$1.

Intraday high hit 41.935:$1, while intraday low settled at 41.985:$1. Volume of trade amounted to $835.3 million from $735.3 million previously.

Traders said the decline in manufacturing activity in the United States from July to August somehow dampened the outlook on the performance of the global economy as well as dependent economies, as US has always been a key export market for many emerging Asian economies including the Philippines.

The latest performance indicator for the US manufacturing sector showed uncertainties in the capability of the United States to post a more solid recovery, traders said.