Peso falls amid reports of Japan exports drop, less manufacturing in China

AFP FILE PHOTO

MANILA, Philippines—The peso fell on Thursday as reports of a drop in Japanese exports and speculations of a decline in Chinese manufacturing activity in August dampened appetite for emerging market assets.

The local currency closed at 41.765 against the US dollar, down by 15.5 centavos from the previous day’s finish of 41.61:$1.

Intraday high hit 41.56:$1, while intraday low settled at 41.82:$1. Volume of trade amounted to $885.2 million from $1.02 billion previously.

The depreciation of the peso came amid uncertainty over the economic performance of countries in the region. Japan exports fell by over 5 percent in August, while estimates pointed to a decline in manufacturing activity in China for the same month.

Japan and China are two key export markets in Asia for many neighboring economies, including the Philippines.

Economic activities in the two countries are said to be weighed down by the crisis in the eurozone and the lackluster performance of the US economy. The Western economies serve as main destinations for exports of many Asian countries, including China and Japan.