Peso falls on decreased export earnings in August

AFP photo

MANILA, Philippines—The peso fell on Wednesday following the release of a report showing a significant contraction in the export earnings of the Philippines in August.

The local currency closed at 41.55 against the US dollar, down by 9 centavos from the previous day’s finish of 41.46:$1.

Intraday high hit 41.51:$1, while intraday low settled at 41.58:$1.

Volume of trade amounted to $807.9 million from $744.4 million previously.

Economists said emerging markets like the Philippines would likely suffer from anemic export revenues as key export markets—the United States and the eurozone—have remained confronted with major economic problems.

Traders said the decline in export revenues of the Philippines substantiated concerns that prolonged crisis in the eurozone and the anemic growth of the United States might dampen growth prospects of emerging markets.

The National Statistics Office reported Wednesday that exports amounted to nearly $3.8 billion in July, down 9 percent from $4.17 billion in the same month in 2011.