Peso slightly dips over downgrading of Spain’s credit rating

AFP FILE PHOTO

MANILA, Philippines—The peso fell slightly on Thursday as the move of Standard & Poor’s to cut the credit rating of Spain dampened risk appetite of portfolio investors.

The local currency closed at 41.575 against the US dollar, down by 2.5 centavos from the previous day’s finish of 41.55:$1.

Intraday high hit 41.57:$1, while intraday low settled at 41.645:$1.

Volume of trade amounted to $972.2 million from $807.9 million previously.

The depreciation of the peso, which came with the fall of some other Asian currencies against the greenback, came following the release of a report that S&P downgraded Spain’s credit rating to just one notch above junk status.

Traders say the report substantiates observations that resolution of the debt problem of Spain and other eurozone economies is far from over.

The depreciation of the peso came with the decline in the Philippine Stock Exchange index by 16.13 points to 5,353.47.